Cheryll Barron

Author Archive

The lost wisdom of co-ops: a conversation about the key to future creative freedom for artists and inventors of every stripe

In 4th Estate moves, Blogging and bloggers, Cooperatives, Leveson Inquiry, The 5th Estate in action, The future of publishing on 20/05/2012 at 9:43 pm

All artists now want to work on terms they co-determine.
Photograph by MIL22.

Post-Gutenberg will occasionally be letting visitors eavesdrop on discussions between our colleagues – starting with the pseudonymous and gender-free Escargot and Mustrun, who are not quite ready to divulge any personal details, except in warning about their tendency to be over-earnest, humourless, and on occasion, dull. Not the best qualifications for bloggers, we agree, but we make do with what we have – or rather, who.

Mustrun: I see that on Sunday we linked to The Observer — to a sharp John Naughton column about the Facebook hype falling flat on Wall Street. Someone here dropped into a comment there a link to our Valentine’s Day post about snubbing Facebook and re-inventing social networking sites as co-ops.

Escargot: So that’s why our traffic numbers have gone zooming into outer space. We’re not used to thundering herds of visitors shattering the monastic silence in these parts.

Mustrun: Right. Co-op promoters are the slave trade-killers of tomorrow.

Escargot: Trying to be aphoristic again, are we? Don’t. That one’s as clear as mud.

Mustrun: Just saying. All the clever people were sure for over two millennia that slavery would always be with us. Anyone trying to abolish it was written off as a lunatic or idealistic fool.

Escargot: Oh. Quite. Last week that lovely Leveson Inquiry judge, more owly than we are, was asking eminent witnesses to suggest how to make the British press behave in the future, and be less hopeless at holding politicians to account. No one mentioned redesigning media organisations as co-ops, but it’s surely a solution whose day has come. Not to mention dead relevant.

Mustrun: You’re thinking of the Harvard journalism lab experiment? Something to do with an Indian tree that looks like a multi-limbed goddess on steroids?

Escargot: The Banyan Project, yes. It’s been building a prototype for doing online journalism as a cooperative enterprise, focusing on local news. The man behind it, Tom Stites, has exactly the right idea. We’ve quoted him on post-Gutenberg before.

Mustrun: We have? Well, you know me. Any subject not mentioned in a post header, or that I didn’t write about myself, does not register.

Escargot: [sighing inaudibly] So as usual, you want me to urp up what he said, to fill you in?

Mustrun: Leopard, spots; all in the hard-wiring – yes? … If you would, please, Scargo.

Escargot: [reads through imperceptibly gritted teeth] ‘A significant source of co-ops’ strength is the trustworthiness inherent in their democratic and accountable structure. … This is also an era of rampant mistrust of journalism, so co-op news sites’ trustworthiness has the potential to add value to what they publish. Further, the co-op form allows, or rather demands, that news coverage decisions arise from what a community’s people need … The web is inherently collaborative — just as co-ops are — and at the local level this creates the potential for civic synergy — ’.

Mustrun: Translation: co-ops and the internet were made for each other. Spot-on, in that long-winded Murrican way. He might add that it’s strange but true that large parts of the internet sit on top of ‘peer-to-peer computing’. But this Justice Leveson, … how is he supposed to go from applauding a fine example like Banyan – assuming he does any such thing – to persuading the media to try out co-ops? He’s hardly going to order them to alter what we’re supposed to call their ‘business model’.

Escargot: Right. Britain is not a dictatorship. But he might recommend that the government offer old or new media organisations tax breaks for setting up co-ops – in the oldies’ case, by reinventing themselves, or parts of their operations, as co-operative outfits.

Mustrun: You think journos would sign on? Remember that the majority so detest the idea of any change that they can’t even bring themselves to report that Nick Davies — the journo hero of the phone hacking saga — told Leveson that the press cannot be trusted to regulate itself.

Escargot: Mmmm. Some of them will sign on, certainly. More will as the idea loses its strangeness, I suspect. There are editors and journalists who’d leap at the chance co-ops could give them to set rules and policies collaboratively. Mainly, I suspect, the craft-focused ones — hoping, like artists and writers everywhere, that this net revolution really will get rid of hierarchies and gatekeepers.

You saw the Tom Friedman column celebrating some of that on the New York Times site yesterday – yes?… But then of course, many journos live not so much for the craft as for the clubbiness in the profession. And sort of think of themselves as football teams – the women just as much as the men.

Mustrun: Clipped Friedman for skimming, later. Journos are petrified of more democratic media organisations, especially of any plan that involves making room for outsiders — for more varied contributors and voices. I’m always asked the same nervous-Nellie question about posts on here like ‘Co-owning media is on the horizon …’. It’s this: will working in a media co-op mean that trained journalists get paid the same as bloggers and citizen-journalists?

Escargot: Oh, I’m asked that. All the time. No matter how many times we explain that the way a co-op works will depend on the particular set of rules its owner-members agree on, the journos and media managers revert to projecting their most paranoid fears onto any mention of  co-operatives.

Mustrun: Someone ought to re-publish that superb Tom Lester article about co-ops in the disintegrating copy of Management Today you once disinterred from our archive. It’d make a terrific contribution to the new e-publishing collections of long-form journalism – with an introduction setting it in context, of course, and updated facts. Remind me of the year it was published?

Escargot: Imagine you proposing anything in long form, Musto. The owner of the world’s most attenuated attention span. The Lester piece — the cover date for the magazine says February 1979 — deserves every last gram of your praise.

Mustrun: Even text-grazers like me have to stop for a real meal, now and then. What he pulled off in that article is amazing. His subject was the failure of the Kirkby Co-operative in a depressed manufacturing town near Liverpool. Yet by the end of his dissection of how Kirkby was done in by badly-designed rules, you somehow feel hugely optimistic about a well-designed co-op’s chances of succeeding.

Escargot: Yes, yes, and yes. The piece partly answers the question of how journalists might be paid in relation to bloggers – not that we existed, then — by explaining the rules for profit-sharing in one of the world’s biggest and most brilliant co-ops. Mondragon, in the Basque country of northern Spain.

Mustrun: ‘Mondragon’ sounds like something in Lord of the Rings. Lester uses its exotic history — it was started by a Catholic priest in the desperate aftermath of the Spanish Civil War — to create a riveting context for a step-by-explanation of exactly how an individual could join a co-op and help run it.

Escargot: [ swipes over to scanned copy of the article in a tablet computer ] The ratios may have changed, but in 1979, Lester said that at least 30 per cent of a Mondragon co-op’s profits had to be put away in the collective reserve funds. Then, ‘the other 70 per cent is divided up among the members of the co-op according to a points system reflecting job status.’ … And of course, every member could help to decide the status of one job in relation to another.

Mustrun: But in addition to practical, nitty-gritty details like that, he tells about some of the lunacy that seemed to go hand-in-hand with the passionate idealism behind co-ops of the past.

Escargot: Mmmm. ‘No shortage of idealism,’ he says about Mondragon, ‘…but mixed with hard-headed realism.’

Mustrun: Yes, but noisy idealism has been the biggest enemy of co-ops. Makes sensible people mistrustful.

Escargot: Quite. If only people who believe in them and have the right skills – extroverts, unlike us – would just get on with setting them up with no fuss. The way, for instance, Tim Berners-Lee quietly invented this World Wide Web. What could be more idealistic than a way of communicating as powerful as this one, connecting the whole planet –  but given away, free? A scientist silently beavers away in a lab in Geneva and without any self-advertisement, no speechifying whatsoever, changes the world.

Mustrun: Well, I really must, … you know …

Escargot: Right. Off you go, then.

Will Leveson end blessing press partisanship and slamming the brakes on the rise of new media and the 5th Estate?

In 4th Estate moves, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The future of publishing on 15/05/2012 at 11:00 am

Lord Justice Leveson interrogating Rebekah Brooks, the former News International chief.

Why is this blog keeping a close eye on the progress of the Leveson Inquiry? Not because of minutiae about Rupert Murdoch and his henchwoman Rebekah Brooks jumping in and out of bed with British prime ministers, metaphorically speaking – as important as those shenanigans are to grasping the extent to which the governing of Britian has been infested by parasitical media magnates.

Under his Inquiry’s terms of reference, Lord Justice Leveson will have to make recommendations about the future of press regulation in Britain. These are bound to influence the debate about policy in other parts of the world. The expectation about the effect of his prescriptions that we at post-Gutenberg find most exciting is in this advice the judge has received:

…[I]f you do get the regulatory framework right for print journalism, I think that will have a profound effect on the way the Internet develops. […] What I think is happening is that we’re going to end up in a position where there has to be a redefinition essentially of what a journalist is.  … [I]t would be absurd to expect you to have regulation for every single person who is on Facebook and Twitter because then you’re not far off from saying we have to regulate the content of text messaging and so forth. [...] So I think there has to be a definition of what a journalist is, what a media organisation is, and [though] this is where I have some sympathy for the print industry, it’s not just about the print industry.

That was part of yesterday’s testimony by Alastair Campbell, the much-reviled political strategist and press adviser to Tony Blair. Further justifying this blog’s praise for his contribution at an earlier hearing a few months ago,  Campbell has proved to be incontestably the clearest and best-informed thinker among those assisting the Inquiry.

Lord Justice Leveson’s obvious grasp of the most subtle aspects of what Campbell told him was particularly welcome after undercurrents at last week’s hearings suggested that perhaps David Cameron’s government – even though it commissioned this Inquiry – had been warning the judiciary, off-stage, about excessive zealousness.

The presiding judge’s unfailing good humour had up to then been as striking as his scrupulously fair treatment of all witnesses. But a newspaper quoted him as having said, last Thursday, with unprecedented irritability, that he was impatient to reach the end of the hearings and get back to ‘productive judicial work’. As this followed his rejection, the week before, of the government’s request for privileged ‘core participant’ status in the proceedings, it seems most likely that friction between the executive and judicial overseers of our democracy played some part in darkening his mood.

There were other apparent reactions to unpleasant, behind-the-scenes manoeuvring – as in the somewhat tortured and meandering summing-up by the chief interrogator, Counsel Robert Jay, of the chief issues raised by the hearings. Formally addressing the Lord Chief Justice, he delivered a sort of pre-mastication of findings from witness testimony to date. In this, he partly echoed quixotic attempts by the media to justify a partisan press – of which the most bizarre has been an argument offered by The Economist, dissected in an earlier post on this blog.

‘The fearlessness and vibrancy of our press is something of which we should be enormously proud,’ Counsel Jay, usually a model of calm rationality, said in a rare rhetorical passage. He also said:

Newspapers are entitled to be partisan in a democracy, to campaign in favour of causes, policies and political parties; and were the State to legislate otherwise that would be undemocratic, as well as, under our current settlement, an abrogation of human rights.

This paean clashed with his clear understanding – obvious from his thinly veiled outrage, in one interrogation after another – of the damage done by partisanship.  On Friday, grilling Rebekah Brooks, the former chief executive of News International, he sought to underline that the payoff for newspapers, for pushing the agenda of their chosen political parties, is the ability to influence policy — and that this seriously undermines democracy. A New York Times report spotlighted his repeated insistence to Brooks that

…. media executives and editors were ‘unelected forces’ influencing policy by exercising power over governments …

Post-Gutenberg wondered, watching a video feed from Leveson:  since when has the concept of press partisanship been warped by being treated as an essential component of press freedom?  Not everyone is taken in by this Orwellian obfuscation. Gus O’Donnell – a Whitehall mandarin who has served three governments as cabinet secretary –  testified just before Alastair Campbell yesterday. In his written statement submitted to the Inquiry in advance, he said unequivocally,

Newspapers can and do actively support political parties, meaning it can be difficult to obtain objective information from them …

… then, in his live testimony, added:

 … [I]t’s in their strong interests for politicians to talk to newspaper editors and proprietors to try and explain their policies, try and explain why that newspaper should support them.  That’s been going on and continues to go on and that’s the structure we have.  And as long as you have newspapers which are allowed to strongly support and come out very overtly in favour of political parties, that relationship is going to continue.

Where I would like to see a change, perhaps, is […] if you contrast the newspapers, say, in the United States with the United Kingdom, you’ll find in the United States newspapers in general tend to separate out opinion and news much more.  So you’ll get a page of opinion, which basically says, “We strongly     support this politician or this set of policies”, in a very kind of almost propaganda-ish way, and then you’ll get the news columns, which tend to be pretty straight.

I think if you looked at our newspapers, where they differ is that you’ll find that you get all the opinion in the same way but in the news stories. [my ital.]

… Why is the press so desperate to convince us that media partisanship is a good thing? Because, if the public approves of the press siding with particular political leaders and parties — instead of preferring press impartiality,  as it actually does, at present – the 4th Estate can continue to assume king-making powers.

Politicians will continue to put themselves at the beck and call of newspaper proprietors and editors in the hope of winning their nominations in elections. As Campbell pointed out yesterday, Murdoch’s is not the only press fiefdom involved in what O’Donnell characterised earlier in the day as ‘a co-dependent relationship between politicians and the media’.

Alastair Campbell noted:

Because Murdoch’s the biggest figure and because the phone hacking has led to this Inquiry, there’s been a huge amount of focus on him, but this goes right across the media panoply.  I mean, I was in charge of Tony Blair’s  media operation and we had strategies for all of these papers and we had approaches out to all of these papers.

Let us hope that Lord Justice Leveson, when he sits down to write his report, proposes a regulatory framework that puts an end to the toxic mutual manipulation that goes with press partisanship. Let us hope that he can resist the huge pressure being brought to bear on him to stop citizen journalists and other outsiders from breaking up the exclusionary symbiosis of old media and government.

One thoughtful witness after another has recommended greater transparency and accountability in press dealings with the government and politicians. Excellent and essential ideas, yes. But the Lord Justice should, in addition, do all he can to let the new technologies at our disposal open the way to many more disseminators of facts, and to challengers of media warping or omitting inconvenient facts.

New voices must be heard from – in whatever framework he advocates — on equal terms with today’s media powerhouses, even as the lights dim in these institutions, and they bow before the force of the onrushing 5th Estate.

Memo to Walter Bagehot, ex-editor, The Economist: did you really mean to defend a partisan press, the most insidious enemy of democracy?

In 4th Estate moves, Leveson Inquiry on 06/05/2012 at 8:01 pm

We cannot let the reign of the 4th Estate end in nothing but frayed and faded ideals. Composition by Tricia Meynell. www.triciameynell.com

Walter Bagehot

6 May 2012

to: ghost of W. Bagehot, Esq., editor, The Economist, 1860-77

from: post-Gutenberg, a 21st-century blog

Sir: this blog is not in the habit of addressing spectres. We are not even sure we believe in ghosts. But if that isn’t a phantom you writing the column titled ‘Bagehot’, and the ‘Bagehot’s Notebook’ blog for your old paper in St. James’s Street, then someone is spouting a stunningly unpersuasive argument in your name.

Let us assume that you do exist. This somehow seems friendlier in the age of social media – and we are thrilled by the possibility of a ghost going to the trouble of broadcasting his opinions.

Are spectral attention spans long or short? We cannot decide, so will make our response easy to scan.

Please refer to your post ten days ago: ‘Are British newspapers a menace to democracy?‘:

• Partisanship in the 4th Estate. Why do you defend a partisan press when impartiality has been the noblest aspiration of the 4th Estate – and its American equivalent? See this list of principles in The Elements of Journalism, quoted here a few weeks ago:

1. Journalism’s first obligation is to the truth.

[…]

4. Its practitioners must maintain an independence from those they cover.

5. It must serve as an independent monitor of power. …

And, as the judge presiding over the Leveson Inquiry explained as its purpose, at the start of the proceedings,

…[A]ny failure of the media affects all of us. At the heart of this inquiry therefore may be one simple question – who guards the guardians?

• Democracies need unbiased facts. Have you forgotten that a democracy is virtually pointless without disseminators of facts who can give voters the truth – the chance to get as close as possible to factual completeness — to help them make the best decisions in elections and referendums? That is why – as you know — the 4th Estate has long been granted such special privileges as access to lofty authorities, the right to protect sources of information, etc..

You seem to be under the illusion that whether the press is good or bad for democracy turns on how the media direct and manipulate their audiences’ opinions about voting choices — rather than on the reliability of the facts about the world that they serve up.

• If there is any justification for a partisan press, you haven’t supplied it. You said, about journalism that takes sides:

Newspaper campaigns clearly influence policy-making. […]  But arguably their greatest day-to-day influence is indirect. […] Britain is an outlier [...] In lots of European countries politics encompasses angry extremes, with the hard-right and far-left attracting hefty votes. By contrast, newspapers in such countries are often small-circulation, centrist, and prim. Britain does things the other way round. Partly because of first-past-the-post voting, the big parties cluster at the political centre. The brass-band blare of dissent comes from a fiercely partisan press. 

About that, one commenter (not anyone we know) expressed the essence of our reaction at post-Gutenberg:

Konker

April 27th, 06:13

Bagehot repeats the old trope that British newspapers are extreme and therefore its politics is moderate whereas in Europe politics is extreme because the media is moderate. Does anyone seriously buy this argument. That the nature of the press determines the nature of politics. And that politics is opposite to the press. And that you can only have extreme and vicious press or moderate centrist press. What a piece of nonsense.

If Konker is mistaken and that isn’t nonsense, then – to justify such an exotic argument – why not cite a respected political scientist? Or offer your readers a hyper-link to a table with statistics for European voting patterns? Link to a book or study that supports those statements?

When you say, ‘lots of European countries’ — with surpassing vagueness — which ones are you referring to? To the best of our knowledge, the largest, France and Germany, have big political parties clustered at the centre. Just like Britain. So? … Walter! The outlines of your life mention your pride in writing about politics and economics with scientific precision. Science = substantiation. Since you know how to blog, you can surely use these tools that think with strings of 1s and 0s to share evidence with us? You could put a URL or two into your texts — yes?

Sorry, this argument sounds like something you might say at the merry end of an evening at your club. (Spectres don’t haunt those, do you?)

• The preferences and political agenda of even a free press are not the most important forces in a democracy. It is the will of the people that matters most. Even press freedom is about the people, and not the press – as the Lord Chief Justice said in a speech he gave just before the formal proceedings of the Leveson Inquiry began (words to which the press largely played deaf). He quoted a famous statement in 1762 by the reformer and political agitator, John Wilkes:

“The liberty of the press is the birthright of a Briton, and is justly esteemed the firmest bulwark of the liberties of this country”.

We embrace that statement. The significance of what John Wilkes said was not, as those connected with the media sometimes suggest, that the statement is upholding the liberty of the press. [...] It is the birthright of the citizen that the press should be independent.

We speak of ‘media’ because they represent channels for expressing the opinions and feelings of the people. Newspapers are not goads, nor licensed wielders of carrots and sticks. Read Paul Johnson on the rise of democracy in 19th-century Europe. ‘Towards the end of the 1820s, the world moved a decisive stage nearer the democratic age,’ he has written, listing among the chief factors and trends behind that, the spread of literacy, and ‘huge increase in the number and circulation of newspapers.’ In Britain, it was not just newspapers through which public sentiment was expressed:

… [T]he demand for fundamental reform was growing again. One reliable index of political intensity is the number of political prints produced, which can be gauged from the vast stocks held in the British Library. Artists and print sellers mirrored middle-class opinion …

• Your own readers do not want a partisan press. If the results of this poll running on your own site since last July can be trusted, 73 per cent of 2,686 of them have voted ‘Yes’ in reply to: ‘Some commentators welcome the rise of a partisan press […S]hould respectable news organisations strive to be fair and balanced?’

• Partisan reporters on politics cannot do their jobs properly. You end your reflection on whether British newspapers undermine democracy by saying,

Journalists and politicians can never be truly friends. Lowly reporters and MPs always knew this: given a big enough story, each will turn on the other.

Really? If that were true, why did staff journalists on the Whitehall beat fail to get this century’s biggest scoops in politics — and leave the job to outsiders, the freelances Heather Brooke and Nick Davies, as this blog recorded last week.

… There’s a beard-scratcher for you, old bean!

—————————————————————————————————————

[ More on this subject: 

Will Leveson end blessing press partisanship and slamming the brakes on the rise of new media and the 5th Estate?

http://post-gutenberg.com/2012/05/15/2311/ ]

Murdoch’s end shows why the 4th Estate needs competition, power-sharing, and watchdogs as astute as Lord Justice Leveson — on permanent duty

In 4th Estate moves, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The 5th Estate in action, The future of publishing on 30/04/2012 at 9:36 am

Rupert the piteously wronged: it should not have taken 30 years to see him flushed down the sewer of history

Questions that came to mind, watching segments of Rupert Murdoch’s testimony last week at the Leveson Inquiry into the culture, practice and ethics of the British press:

Why did it take over three decades — the lifespan of some loyal readers here — for the outing of Rupert Murdoch as the most pernicious influence on British journalism for at least a century?

Max Hastings, who was for some years the editor of The Daily Telegraph – but has voted for both Labour and the Tories, in different elections — is almost the last man standing at the profession’s summit who deserves deepest respect. His account of competing with Murdoch and his newspapers in a memoir published ten years ago, Editor: An Inside Story of Newspapers, reveals why the man went unchallenged for so long, and offered a deft portrait of him:

… Murdoch, as always when I encountered him, cut a curiously joyless figure. He appeared to have no life beyond his business, no cultural or aesthetic interests. [… He] will leave this planet having added precious little to the store of decency, culture, humanity …

[…]

One of the most sensitive issues for many British newspapers is that of how they treat their rivals in print. There is a shameless, self-serving compact between companies, that the personal embarrassments of newspaper owners are not reported by competitors. Anyone who attempts to write about Rupert Murdoch’s or his family’s domestic arrangements for another publication is likely to receive  a call (or, more likely, his editor or managing director will do so) from one of the great tycoon’s senior stooges at News International, drawing attention to the proprietors’ pact, and warning without much subtlety about the inevitability of retaliation if the convention is breached. The preposterous Barclay brothers ruthlessly assert their right to be spared personal publicity of any kind, even about the fortress they have constructed in the Channel Islands, and even though they have chosen to become newspaper owners.

It always seems pretty rich, that titles which derive most of their income from laying bare the private lives of others should show no embarrassment about protecting their own proprietors from scrutiny, through what amounts to a system of social nuclear deterrence.

All that being known on Fleet Street, why are none of the newspaper chieftains conceding, as they analyse the implications of Murdoch’s toppling, that he and they were all in the same club? … Why are none of them explaining the wider consequences of that to their readers? … For instance, that staffers on their papers were as entangled with politicians as Murdoch and his lieutenants were – so much so, that the two most important scoops of the last decade about power in Britain came not from staffers but freelance journalists?

As far as I can tell, there has been just one noble exception to this selective blindness. An Observer columnist, Henry Porter, wrote at the weekend:

The point of regulations and institutions is to defend the relatively fragile democratic process from people like Murdoch. The fact that none of the safeguards worked and we came within a whisker of allowing his near total dominance of the marketplace further erodes our faith in the political class to act in the interests of the public. Let’s not forget that it was largely accident, and the dedication of a very few journalists, that exposed the cover-up, of which Murdoch now claims, with eye-watering hypocrisy, that he was a victim.

Actually, it was one dogged and intuitive reporter – Nick Davies, working as an outside contributor to a broadsheet newspaper, who was able to capitalise on the ‘accident’ that exposed the extent of phone hacking by Murdoch’s minions.

Why did staff journalists anywhere fail to publish that ugliness hidden in plain sight, or break the political horror story of 2009, the MPs’ expenses scandal – the revelations about members of parliament misusing allowances and expense accounts to pay for pornography and cleaning their castle moats, among other fraudulent acts?

This scoop was also the triumph of a freelance journalist, Heather Brooke – operating outside the cosy club in which the country’s leading parliamentary correspondents wined and cuddled politicians.

The inescapable conclusion?

The club walls need tearing down. It is time for the long reign of 4th Estate journalism to give way to the 5th Estate, in which new rules and conventions will allow for the full participation of outsiders, including citizen-journalists.

Like everyone else who cares about making democracy work, David Puttnam, a genuinely idealistic politician and activist who is also a hugely successful film producer – of Chariots of Fire, for one – perceives a clear need for media reform:

In the House of Lords and elsewhere, I have repeatedly called for a comprehensive cross-media impact study – so far to no avail. At the end of his session with Lord Justice Leveson, Rupert Murdoch described the digital landscape, which we have now entered, as one in which tablets and GPS-enabled smartphones are displacing newsprint. The potential of this technology to engender even greater competitive diversity in an intelligently regulated democracy ought to be very welcome. It should result in a broadening of the lens through which we see the world, not a narrowing of it.

But that requires a clear regulatory framework that encourages, in fact enables, media plurality to flourish. We cannot, for example, legislate for good journalism, but we can legislate for the conditions under which the very best journalism is nurtured and sustained.

There were some hostile early reactions to the Leveson Inquiry from the 4th Estate — when it was not ignoring it altogether — like this bit of ludicrous exaggeration by the Guardian columnist and former editor of two newspapers, Simon Jenkins: ‘As with a military occupation, the longer Leveson’s tanks stay on Fleet Street’s lawn, the less benign they seem.’  But lately, some leaders there have apparently begun to hope that the judiciary’s interest in their doings might be used to protect them from being overrun by the 5th Estate.

A Guardian editorial last week adopted a surprising new tone:

The other revealing moment in Murdoch’s testimony last week was when he launched into an incoherent rant about – and against – the internet. […] As Murdoch rambled, waving his arms despairingly and pounding the table, it was difficult to determine what point he was trying to make, other than the unfairness of governments regulating newspapers while the wild west web remains untamed. Was it just that he senses his powers ebbing away, flowing towards the new masters of the digital universe – the Sergey Brins, Larry Pages and Mark Zuckerbergs of this world?

Will they turn out to be any better than the media moguls who preceded them? And who will play Lord Justice Leveson’s role if they don’t?

As this blog pointed out, when newspapers on both sides of the Atlantic were doing their best to ignore the judicial probe, the two-man team of Lord Justice Leveson and Robert Jay has been giving us an astonishing demonstration of judicial skill and insight. This is British justice at its dazzling best.

David Cameron would do well to put these same men at the head of the organisation that replaces the disgraced Press Complaints Commission – at least, for the first few years of its existence.

Above all, let us hope that in his recommendations at the Inquiry’s end, this Lord Justice spotlights the need for the media to adapt for the future, in a reinvention guided by maximising inclusiveness and transparency – through, for instance, co-ownership. See:

(for an explanation of why the old order has to give way to the new: )

Good Guardian, bad Guardian, and two more censored comments

http://post-gutenberg.com/2011/11/15/good-guardian-bad-guardian-and-two-more-censored-comments/

Also:

Why a keiretsu-cooperative is a gentle transition for old media

http://post-gutenberg.com/2012/02/21/why-a-keiretsu-cooperative-is-a-gentle-transition-for-old-media-and-how-about-saying-an-exaltation-of-bloggers/

Co-owning media is on the horizon — and press coverage of the Leveson Inquiry shows why we need this

http://post-gutenberg.com/2011/12/06/co-owning-media-with-audiences-is-on-the-horizon-and-press-coverage-of-the-leveson-inquiry-shows-why-we-need-this/

Why is The Guardian censoring debate about press reform and ignoring the Lord Chief Justice’s endorsement of citizen journalism?

http://post-gutenberg.com/2011/11/07/why-is-the-guardian-censoring-discussion-of-press-restructuring-and-ignoring-the-top-judges-support-for-citizen-journalism/

Is Amazon a bully, beating publishers into submission? Dear writers: some publishers were aiming for totalitarian rule of the book business

In 4th Estate moves, E-books, Re-arranging publishing for the 5th Estate, The future of publishing on 23/04/2012 at 8:28 pm

Writers forever scooter-riders, while publishers travel in limousines? Photograph by MIL22.

Not many writers visit the book fair. ‘It’d be like bringing a cow for a stroll around a meat market,’ said one editor.

report on the London Book Fair by Patrick Barkham, 18 April 2012

[ the date is what matters most, here: ]… Publishing is moving towards a crisis. One should expect to see a number of respected publishing houses quietly exit the scene.  […]  Authors’ incomes are low for an embarrassingly simple reason: publishers do not sell enough copies of their books. […] For every copy of a hardcover book sold at its normal retail price, one book is sold as a remainder – a book that goes from the publisher to the remainder dealer for less than the cost of producing it and with zero income to the author. No other industry can make this claim.

– Leonard Shatzkin, In Cold Type: Overcoming the Book Crisis, 1982

Someone once said that his favourite times in history were when things were collapsing, because that meant that something new was being born.

– Julian Barnes, The Sense of an Ending, 2011

Writers are deeply confused by e-publishing and its implications. They are mistaking friends for enemies, and embracing their most shameless exploiters – for centuries – like Little Red Riding Hood hugging the beast tricked out as her granny.

I read with eyes popping in disbelief a veteran publisher, Dan Cafaro, advising young writers to ‘mentally prepare to endure as a starving artist.’ He said that last October. Then, referring to the digital revolution, he suggested that they ‘carve out a patchwork career in the creative arts by complying with the behaviours of this new paradigm of publishing’.

How could he have come by the wisdom in his second pronouncement without understanding that the ‘paradigm’ taking shape represents the best chance that has come along – ever – to change the meek acceptance of hunger and suffering as inevitably the lot of scribes? … Yes, thank you, I have read my history. I know that this has been thoroughly conventional wisdom for a long time. But why not consider that for aeons, everywhere, the wisest heads once saw the fates of kulaks, their poorer fellow-peasants, and Hindu caste untouchables, as equally immutable – until these social doormats seized their chance for rebellion?

I would like writers who care about being able to make a reasonable living some day to get just two things right: (i) Amazon is their true friend, as this blog has explained before, and not members of the old print club, like the five publishers fined by the U.S. justice department on the 11th — with Apple – for collusive price-fixing.  (ii) Far from gobbling up book publishing on every continent and turning everyone else in the business into a forelock-tugging serf, the giant retailer could just let us rewrite the sad story of writers and their wages into a far happier narrative.

Scott Turow, the president of the American Authors’ Guild, is simply wrong to say that the antitrust suit risks ‘killing real competition in order to save the appearance of competition.’

Consider these arguments by one of the few voices of sanity in the hullabaloo over Amazon’s well-deserved victory over the price-fixers. What Eduardo Porter said in his ‘Economic Scene’ column in the New York Times last week is not merely true. It correctly puts the welfare of writers — the workers without whom there would be neither books nor e-texts — at the centre of the picture.

To believe publishers and authors, the government just handed Amazon a monopoly over the book market: The price-fixing suit against Apple and the nation’s top publishers […] will free Amazon to offer ruinous discounts in the booming new market of electronic books, drive brick-and-mortar bookstores out of existence and kill off publishers’ lucrative business of ink on paper.

[…]

Yet there is a different reading to this story. Publishing companies — like bookstores — fear they are on the losing end of a technological whirlwind of digital distribution that will make much of what they do obsolete. They would like to stop it. But though publishers may be happy to subvert competition to protect their business, this can entail a heavy cost for the rest of society.

Why have none of the hysterical media commentators Porter contradicted in his analysis – for instance, David Carr, writing for the same newspaper – met a journalist’s obligation to state the whole truth, which is that Amazon’s share of e-book sales has fallen dramatically over the last two years? As Porter says,

While Amazon remains dominant, its share of the e-book market has fallen to about 60 percent from 90 percent.

Carr dug out a law professor in New York to say, for his column: ‘It is not clear that lower prices are necessarily in the long-term interests of the public at large.’ He found a New York lawyer for a gloomy summing-up: ‘The book business is both hermetic and dwindling. There is not a drop of new capital coming into this business … The margins are low and there is almost no growth …’.

The only trouble with orchestrating this condemnation of Amazon is that the same mournful dirge was being played for book publishers thirty years ago. Then, there were no e-books or gigantic e-booksellers. E-publishing existed exclusively in the misty visions of futurists.

In In Cold Type: Overcoming the Book Crisis, Leonard Shatzkin, a respected senior executive in the New York book business, wrote three decades ago:

There is no longer very much doubt that trade book publishing is suffering from more than its share of our present economic malaise … The immediate future for … book publishing in general is bleak …’. [his ital.]

A number-cruncher at heart, Shatzkin diagnosed poor sales forecasting and inefficient stocking and inventory management as the chief cause of book business woes. He dreamt up complex mathematical formulae for calculating the ideal size of a publisher’s sales force, and techniques of regression analysis for projecting book sales.

Though it is clear throughout his book that he was a civilised man who cared about readers, sound editorial policies, and publishing’s ‘contribution to the health of our democratic culture’, only one of his sixteen chapters was devoted to writers: ‘Don’t Forget the Author’. Who does his book treat as the lead characters in the business? Publishers, book distributors, and booksellers.

Encapsulating his recommendations for curing publishing of its ills, he advocated precisely the reverse of what actually happened after Amazon entered the scene about ten years later – that publishers aim at complete control of the book business by wresting power from book distributors:

It does not seem too far-fetched to suggest that some of the larger publishers will some day make publisher control of inventory a condition for doing business with a book retailer. […] The introduction of rational, publisher-controlled and publisher-responsible distribution implies other desirable consequences. […] Distribution controlled by the publisher will reduce the shameful waste resulting from the present need to guess how many copies will be needed on publication day …

And what was the happiest result he foresaw? It is hair-raisingly ironic for anyone listening to the raving by Amazon’s critics about the steady decline in book prices that it has brought about:

The reduction in production waste and in the waste of handling and processing of returns […] and all the activities concerned with distribution, should lead to a reduction in the retail price of books. Even at half their present levels, book prices will give publishers much greater margins than they now enjoy.

Ahem.

So, was Leonard Shatzkin – who died ten years ago – a lone, batty eccentric, mostly ignored by his cohorts when he wrote his book? Very much to the contrary, In Cold Type’s publisher, Boston-based Houghton-Mifflin – one of the most blue-blooded imprints in the U.S. – inserted an extraordinary note into the copyright page, which read in part:

It is not often that Houghton Mifflin adds a statement to a book it has published …[W]hen a publisher presents a book containing strong opinions about … American trade publishing, it may be thought that such a book represents, in some measure the philosophy of the publisher as well as that of the author.

Instead of publishers devouring the book chain, as Shatzkin and Houghton hoped, the panic in 2012 is about the chain – or rather, one member of it – making a meal of all publishing.

From the perspective of writers who care most about their craft and the particular manuscript they happen to be working on today, the fight is about as interesting as competition between football teams for someone whose game is boules. Yes,  certainly, who wins – and how – will have crucial consequences for their ability to make ends meet. But to survive financially, writers are better off ignoring the memory-loss endemic among Amazon’s critics and thinking flexibly, like Eduardo Porter, about a universe of possibilities lying before us:

For sure, if brick-and-mortar bookstores disappear, browsing will die with them. But writers and publishers will have plenty of other ways — think Amazon, Facebook or Google — of letting readers know about their books. E-books, moreover, can be profitable. […]  And even if every existing publisher were driven out of business, reading would probably survive. Without the middlemen, publishers might even pay higher royalties to creators.

Let us toast that prospect — make mine a two-shot latte, please.

The Kickstarter-kicking has begun: don’t let crowd-funding of pigs-in-pokes ruin the promise of micropayments

In 4th Estate moves, Micropayments, Re-arranging publishing for the 5th Estate, Social media and networking, The future of publishing on 16/04/2012 at 12:27 am

Looking for an image of a pig in a poke led to this preliminary sketch by Victor Juhasz, on his site showing visitors how he makes decisions about directing his delectable line. www.drawger.com

This post-Gutenberg blog typically takes the giraffe-necked – that is, very long – view. It hardly expects instant gratification for recommendations about the future of publishing, or suggestions for its evolution. That made it both unsurprising and shocking to find the gist of these cautions about micropayments and crowd-funding prove justified in less than a month:

  • Could crowd-funding art with cash advances amassed from micropayments be less helpful than getting artists decent compensation from micropayments collected for finished work?
  • … [Artists] transferring the balance of cash-gathering sweat to work that has yet to be done is surely a bad idea …
  • There is some danger that disappointment with microfunding could lead to disenchantment with micropayments of every kind. That could delay the shift from conventional ways of selling art (through publishers, galleries and so on) to the liberating alternatives that new technological inventions have begun to bring us.

Only six months ago, Gizmodo, one of the most influential technology-watching sites on the web – it counted Steve Jobs among its avid readers – was raving about the prospects of online fundraising for new projects of every sort, from new-fangled gizmos like iPad stands to artistic schemes, inventions, and gigs. Its enthusiasm was concentrated on Kickstarter, the most prominent go-between for creators and the random collections of small-scale investors contributing to ‘crowd-funding’ creative toil:

10 November 2011

Kickstarter is full of awful, ill conceived, downright dumb ideas. So is the internet. So is the universe. But it’s also festooned with crazy-good thinking, ingenuity, and imagination. It’s fun and unfettered.

[…]

Kickstarter is the only viable place any average Jonny Internet can take a decent idea and stand a chance of making it real. No venture capital vampires, no hype …

The recommendations of old print media usually follow in Gizmodo’s wake, but in January, The Economist appeared to boast about leading the applause:

This newspaper has written about Kickstarter several times in the past two years, including an overview of how crowdfunding works after the firm had raised about $15m in its first year. At the time, it was unclear whether such crowdfunding (also called micropatronage) was a passing fad or a rising alternative to conventional starter financing for creative media.

Kickstarter’s performance in 2011 bolsters the latter case.

Though that ancient cosmopolite’s bible did mention the odd disappointment for both fund-seekers and micro-patrons, it has yet to regret its championship of crowd-funding. But for Gizmodo – far more closely in touch with thinking among the twentysomethings who dominate online innovation – it was time for sackcloth and ashes a fortnight ago. In a piece headed, ‘We’re done with Kickstarter,’ Gizmodo explained:

29 March 2012

We look at hundreds of products every week. Sometimes thousands. At first all of us were pretty stoked about Kickstarter, because it seemed like a genuine font of unfettered innovation—the hive mind coming up with products that we truly needed but had never even thought of before. And maybe it was. But it’s not anymore. It’s a sea of bad videos, bad renderings, and poorly made prototypes. Some might be good. Many are poorly made. And some are downright fraudulent, taking peoples’ money without delivering the promised rewards. This has happened to me.

[…]

Hopefully Kickstarter will evolve into something a little more trustworthy that we can feel comfortable sharing with you. Because in this game, a source you can’t trust is a source you can’t use.

In comments on its lamentation, readers railed at Gizmodo in posts like this one from @anamnet:

Giz introduced me to Kickstarter and now they are the first who’re sick of it. Makes them sound like a teenage girl who’s getting over a fad.

Actually, Gizmodo deserves to be congratulated for its forthright mea culpa. Next, it would be wonderful to find on that site a piece weighing all the reasons given here for preferring post-production micropayments – especially for artists and writers, starting with this one:

Seeking and accepting money in advance can constrain creativity. Anticipating prospective backers’ anxiety about squandering even small sums on inconsequential, pig-in-a-poke projects, artists are puffing up their planned works and divulging details of visions that have yet to meet the challenge of execution. How much room for creative manoeuvring and play – or simply changing their minds – will they have when, to reward their micro-investors’ trust, they feel that they must treat proposals as promises?

… Gizmodo’s helpful admission about reading the tea leaves incorrectly on crowd-funding is not just admirable in itself but made a salutary contrast, in my week’s reading, with an older publication’s delusion that it  comprehends what readers want in post-Gutenberg publishing. An extract from a mesmerising report in the latest Private Eye:

‘Last weekend we did something extraordinary.’ That was the verdict of Guardian editor Alan Rusbridger on his ‘Open Weekend’ … at which readers descended on the paper’s offices to gawp at [Guardian journalists].

Never mind that the newspaper is losing money galore. The bring-your-readers-to-work idea represented the way forward for ‘Open Journalism’ – apparently something to do with internet clouds, killer apps, crowd-sourcing and trouser-presses.

Many hacks in the building looked on the jamboree with jaundiced eyes […] but were assured that this is the way forward for Journalism 4.0 as the Guardian set off on its exciting transformation from newspaper to online events organiser.

Alas! The ‘new paradigm’ seems no more profitable than the old one. After totting up the figures, Grauniad beancounters have discovered that the self-styled ‘festival of readers and reasonableness’ – attended by 5,000 people paying between  £60 and £70 – made a net loss of £150,000.

Dear Grauniad, your ‘Open Weekend’ is surely the daftest idea anyone has heard for reshaping publishing. No, your sensible readers do not wish to crowd-fund your survival. Nor do they want to pay to peer at your writers, or throw peanuts through the bars of their cages. How about showing some glimmer of grasping what this post-Gutenberg revolution is really all about? See:

Wanted: a brave newspaper for an experiment in which readers become stakeholders … & … Why a keiretsu-cooperative is a gentle transition for old media — and how about saying, ‘an exaltation of bloggers’?

for 8. 4. 2012

In Uncategorized on 08/04/2012 at 7:00 am

‘It looks as if it could be a gorgeous day, except for a bit of wind,’ a voice said.

A reply framed itself but went unsaid: ‘What a baffling qualification. A bit of wind makes a merely lovely day perfect.’

Not a popular idea.

To the bookshelf, then, to commune with a long dead fellow-connoisseur of all the astonishing variations in the movement of air across a landscape – which can be entrancing in spring, every bit as pleasurable as the soft, caressing warmth and return of the light.

A philosopher Tsu Chi and his disciple Yen Cheng Tsu Yu converse:

‘In the mountain forest, deep and fearsome, there are huge trees a hundred arm spans around, with gaps and hollows like nostrils, mouths, and ears, like gouges, goblets, and mortars, and like muddy pools and dirty puddles. The sounds rush out like water, whistle like arrows, scold, suck, shout, wail, moan, and howl. The leading notes are hissing sounds followed by a roaring chorus. Gentle breezes make a small harmony, fierce winds a great one. When the violent gusts subside, all the hollows become quiet. Have you ever seen the shaking and trembling of branches and leaves?’

Tsu Yu said, ‘The earth’s music is the sound from those hollows. Man’s music comes from the hollow reed. May I ask about the music of heaven?’

Tsu Chi said, ‘When the wind blows through the ten thousand different hollows, they all make their own sounds. Why should there be anything that causes the sound?’

Chuang-Tzŭ (Zhuangzi), Inner Chapters, 4th century BCE

trans.: Gia-fu Feng and Jane English ]

Yes, cooperatives are idealistic … like marriage and parenting, and no, they do not have to be run like AA meetings

In Cooperatives, Social media and networking on 03/04/2012 at 1:15 am

Cooperation or a Mexican standoff? Photograph and mise-en-scène by MIL22

When there is separation, there is coming together. When there is coming together, there is dissolution.

Chuang-Tzŭ (Zhuangzi), Inner Chapters, 4th century BCE

[ trans.: Gia-fu Feng and Jane English ]

It is curious that anger about inequality is boiling over around the world precisely when we have new tools capable of taking us a long way towards a solution.

Yet disillusioned, battle-weary romantics who once joined some attempt to make democracy more democratic — or run a cooperative as an alternative to the Darwinian capitalism so adept at spawning plutocracies — have been telling us how they failed so gloomily that they could be competing for hopelessness with the Icelander Halldor Laxness and his Independent People.

Is it unreasonable to ask that, instead of justifying their pessimism, they collect and broadcast their thoughts about what they learnt from those failures and would do differently if they were to try again? And might they sit up and notice exactly what is possible with the new, democracy-friendly tools that could have helped them to avert disaster — if these had only been invented in time?

If paying attention, the nay-sayers might avoid the unfortunate misperception of cooperatives as cuddly, slow-moving, necessarily lovable ‘kumbaya’ institutions – as in a newspaper columnist’s suggestion last week that members of worker-owned coops might specialise in listening to each other as patiently and empathetically as people at meetings of Alcoholics Anonymous.

… er, please, … no! … ideal co-owners are far more likely to be reading at their own pace – in most cases, fast and online — than attending in the same room to statements of each other’s positions on any issue. Or they might be watching a short video clip on the subject – in the information-gathering and debating prelude to making a decision.

As this blog noted six weeks ago, technology has made it possible for everyone to consider the same information simultaneously, and to spell out goals and policies crisply. The deciding in a cooperative could be done at – well, why not say, warp speed, and that hardly seems an exaggeration when you consider the spread of ‘clickers‘ linked to polling software, and mentioned on the front page of the New York Times last week as

… hand-held wireless devices with just a few buttons.

[…] In recent years, college students have been bringing clickers to lecture halls, where professors require their use for attendance, instant polls and multiple-choice tests. Corporate executives sometimes distribute the devices at meetings, and then show survey responses immediately on Power Point slides. Just two of many companies that make clickers have sold nearly nine million units, which typically cost between $30 and $40 apiece, in under a decade. One of the companies, Turning Technologies, sold 1.5 million in 2011 alone.

But clickers can now be found in […] churches, fire departments, cruise ships and health care providers [...] spreading the phenomenon of online crowdsourcing to off-line crowds. Fans of the devices say they are efficient, eco-friendly and techno-tickling, allowing audiences to mimic TV game-show contestants.

Do not, dear reader, mistake me for a neophile. I put off admitting digital innovations into my life until the penalties for resisting them are nipping at my heels – or a brother of mine has nagged me to distraction. I never forget that no matter how much more tools let us do today than we could yesterday, human nature remains the same at its core — fallible and perverse.

No technological wizardry has made it possible to hand over to robots the effort it takes to succeed at marriage, child-rearing, or working productively and in harmony with other people. All that calls for unceasing trial and error – and persistence, staring down disappointment and discouragement. I found a statement of this truth, twenty-five centuries old, browsing in my ravishing edition of the Chinese philosopher Chuang-Tsŭ’s Inner Chapters – for a reason to be explained in next week’s post.

‘When you wrack your brain trying to unify things,’ the passage begins,

… it is called ‘three in the morning’. What do I mean by ‘three in the morning’? A man who kept three monkeys said to them, ‘You get three acorns in the morning and four in the evening.’ This made them all very angry. So he said, ‘How about four in the morning and three in the evening?’ – and the monkeys were happy. The number of acorns was the same, but the different arrangement resulted in anger or pleasure. This is what I am talking about.

Empathetic listening could be a good guiding principle for some cooperatives, like the one the newspaper columnist has in mind. Other coops will want a different arrangement of acorns. It will all depend on the rules they make for running them.

I have yet to read Howard Rheingold’s latest book, Net Smart: How to Thrive Online – but look forward particularly to seeing what he has to say in it about cooperation and collaboration, having glimpsed in this section his introduction to the ideas of Elinor Ostrom, a political scientist who won the Nobel Prize for Economics in 2010.  He quotes her conclusion that

… ‘institutions of collective action’ were more likely to succeed when a small number of design principles were observed, and more likely to fail in the absence of these measures.

He lists her suggested principles, of which these struck me as most important:

  • Ÿ Rules governing the use of collective goods are well matched to local needs and conditions.
  • Ÿ Most individuals affected by these rules can participate in modifying the rules.
  • Ÿ The right of community members to devise their own rules is respected by external authorities.

… Discussing suggestions like hers is exactly where the conversation about cooperatives needs to go next.

A triumph for cooperatives: customer-owned Swiss banks are thriving while their shareholder-owned rivals lick their wounds in disgrace

In Cooperatives, Switzerland's extreme democracy on 25/03/2012 at 10:33 am

Though the Swiss seem to have a special knack for running cooperatives, there is new interest in this form of organisation in communities all over the world. Photograph by Amita Chatterjee

Everyone writing off cooperatives as impractical — or as artefacts of misguided ‘hippie’ idealism – will please read the article below, re-published with the permission of Swissinfo.ch, a section of Switzerland’s equivalent of the BBC.

The Swiss see cooperatives as building blocks of democracy. They are rightly proud of their own ‘extreme’ or ‘direct’ democracy — the subject of an earlier post here – based on the rigorous implementation of proportional representation, and are apt to shake their heads despairingly about the ‘winner-takes-all’ version of the system of government in other western democracies.

The Economist – which has a habit of sniffily referring to cooperative banks as ‘dull but safe’ – has cited two authorities confirming the wisdom of coops:

A 2009 study by the Bundesbank, Germany’s central bank, into the connection between financial stability and bank ownership also found that co-operative banks were much less likely to fail than those owned by private shareholders. That fits with earlier work done by staff at the IMF in 2007, who argued in a working paper that co-operative banks were more stable than their commercial counterparts.

23 March 2012 

Crisis gives new life to cooperative banks

 by Armando Mombelli, swissinfo.ch 

——————————————————————————–

Sometimes seen as an old-fashioned business model, cooperative banks have succeeded in strengthening their position since the crisis in the financial sector.

The three main cooperative banks in Switzerland – the Raiffeisen, Migros and Coop banks – have been enjoying strong growth in the past few years. 

“Until recent times, the banks had a stabilising effect on the economy. But in the past few years they have turned out to be a destabilising factor,” said Florian Wettstein, who teaches business ethics at St Gallen University. 

“Growing international competition and pressure from shareholders have led to a logic of short-term profit with very negative consequences,” said Wettstein. 

“We no longer talk about growth. What we want is bigger growth than last year’s or last quarter’s. At a certain point, this attempt defeats itself and we get speculative bubbles which burst sooner or later.” 

The last such speculative bubble that burst in 2008 threw the financial sector into crisis and forced many countries to exert huge efforts to save banks in difficulty. 

Even Switzerland was not spared: UBS, the number one Swiss bank, just missed going under thanks to massive intervention by the federal government and the country’s central bank. 

“It is interesting to note that Swiss banks, in particular UBS, were not just caught up in this trend. They played a very active role on the international scene, throwing their traditional culture of caution to the winds,” noted Wettstein. 

New management models 

The crisis in the financial sector spread to the “real” economy and it is still negatively impacting on growth around the world. Governments have been studying new models of management and regulation of banking to avoid another major financial crisis. 

Forbidding high-risk speculative ventures, separating investment banking from deposit management, limiting bonuses and various other measures have been examined by the Swiss government as well as others. 

Government and parliament here have approved an increase in equity capital requirements for banks, higher than those enforced by other European countries. This measure has still been regarded as insufficient by many experts. 

On the other hand, a business model that is sustainable and crisis-proof has existed for quite some time: it is the model of cooperative banks securely anchored in the local economy. 

Since 2008, Raiffeisen, Migros and Coop bank have attracted thousands of customers and billions of francs away from the “big two”, UBS and Credit Suisse, whose credibility nosedived after the losses they took on the American market. 

Last January, Raiffeisen almost completely took over Wegelin Bank, which had to shut down its activities when it found itself under investigation in the United States along with ten other Swiss banks accused of having helped thousands of American customers to evade taxes. 

In February, Raiffeisen became the first bank to guarantee transparent financing of political parties and indicate it was in favour of the introduction of automatic exchange of information on bank deposits with European countries. 

Several advantages 

In difficult times for the financial services industry, this cooperative bank is showing itself particularly dynamic and willing to break with taboos like banking secrecy which no longer seem to have much of a future. 

In the International Year of Cooperatives proclaimed by the UN, this fact may serve to renew interest in a business model often dismissed as old-fashioned – almost all the big cooperatives were founded more than half a century ago. 

“Cooperative banks actually offer several advantages,” said the economist Hans Kissling. 

 “The main one is that they are not exposed to pressure from owners or shareholders, and so they do not go for big risks and excesses. Rather they pursue a long-term strategy in the interest of their members, who are also their customers.” 

“Once shares are not involved, there is no danger of things like insider trading. Nor is there a danger of public takeover bids at their expense: attempted takeovers by other companies have to be approved by the members,” added Kissling, who is a former board member of a cooperative. 

“And last but not least, capital does not drain from the company through payments of  exorbitant dividends or salaries. It stays in the cooperative and gets used for new investments or to strengthen its equity.” 

Democracy and solidarity 

Tending as they do to democracy and solidarity, cooperatives almost always come out on top of the rankings for companies that enjoy the trust of the ordinary public. 

This has not in itself been enough to stimulate growth in the sector: every year thousands of limited companies are founded in Switzerland, but only a handful of cooperatives are set up. 

“The government should introduce tax breaks or create a special fund to promote the conversion of family businesses into cooperatives, for example on the death of the owner. Another option might be to introduce share certificates without the right to vote, which would encourage the capitalisation of cooperatives,” said Kissling. 

In the Swiss banking sector, most of the potential for this kind of development would come from the cantonal banks, which several cantons hope to privatise eventually. Conversion of these into cooperatives instead of limited companies would help safeguard their original mandate. 

In this way, almost half of the 20 principal Swiss banks could one day become cooperatives. 

“Promotion of cooperatives should above all be anchored in the constitution, as it is in Italy,” maintained Kissling. 

“This would not only serve to acknowledge the economic and social importance of cooperatives, but also to emphasise the long Swiss tradition of solidarity, which goes right back to the country’s roots.” 

He recalls that the Swiss Confederation is called in German “Eidgenossenschaft”, which literally means “a cooperative of sworn allies”. 

Armando Mombelli, swissinfo.ch

(Translated from Italian by Terence MacNamee)

[ Of course cooperatives -- being creations of imperfect human beings -- also have their flaws, and these are considered in a swissinfo.ch briefing on the topic. ]

Micro-funded advances for artists is good news: micropayments for finished work — like paying for mobile apps — would be better

In E-books, Micropayments, Re-arranging publishing for the 5th Estate, Social media and networking, The future of publishing on 20/03/2012 at 10:45 am

The tall droid was originally a female bimbo. Photograph: http://www.zazzle.com/starwarselection

Creativity needs flexibility, as I was reminded through the demise of someone who had a hand in creating robots who inhabit a patch of my dreams.

R2D2 is the fictional character of the last hundred years I would choose to give the run of my house – in an eye-blink – although I would settle for his Star Wars comrade, C3PO.  A domestic cleaner-robot with charm is my only hope of indoor snow – of experiencing inside my house the supreme happiness of watching frozen H2O blanket everything messy and unsightly in a landscape and turn it into a serene Japanese garden. Yes, reader, untidiness is one of my besetting sins. I like the idea of being pandered to by a droid whose raison d’être is serving humans, and it hardly matters that Threepio’s responsibilities in the George Lucas series are protocol, etiquette and translation (from ‘six million forms of communication’ – really, just look up his wiki). He is programmable. He is sophisticated. Being so much more intelligent, he would sail over the hurdle before which I always collapse – I mean, work out how to de-clutter my existence without hobbling my attempts to do the few things that justify it. He would strap his frilly apron in place and get on with it, expecting me to do no more than keep his antivirus software up-to-date.

But Threepio might never have found his way onto cinema screens. If not for a sort of creative miscarriage, he would not have been born, and this relates to a question I have been weighing since last week’s post about micropayments. Could crowd-funding art with cash advances amassed from micropayments be less helpful than getting artists decent compensation from micropayments collected for finished work?

Let me explain.

You can pay a carpenter an advance on a set of kitchen shelves, agree on a design and choice of wood, and receive more or less what you thought you would. Though the best carpenters are unquestionably artists of a kind, they rarely derail expectations comprehensively – delivering, say, a four-poster bed in pine instead of the birch shelving grid promised for your heirloom pots and pans. Things are rather less predictable in the arts – even in the most extroverted and collaborative branches, like film-making for mass audiences. Capricious flitting about is of the essence of imagining.

C3PO, you see, was originally a woman – not just an anyone with breasts, but ‘a tall, elegant, expression-less Art Decoesque golden female robot’. I made this discovery a few days ago in a New York Times obituary for Ralph McQuarrie,  an artist who served as a sort of medium for directors of science-fiction and fantasy films. He rendered in gouache detailed externalisations, through  interpretation, of their vague imaginative stirrings about characters – a skill he acquired as a technical illustrator and from some years spent at an animation company. The obituary records that his help was crucial to the success of George Lucas’s quest for the financial backing he needed to make Star Wars – to

… persuading the board of directors of 20th Century Fox to finance the first film in the series, and to distribute the others …

“These paintings helped George get the movie approved by Fox because it gave them something to visualize, instead of just a script,” said Steve Sansweet, the author of 16 “Star Wars” books and until recently the director of fan relations for Lucasfilm.

Now, I reckon that those producers made no fuss about a sex-change operation on what is, for some of us, one of the most endearing characters in the series (not Luke Skywalker, Princess Leia or Darth Vader, who are merely archetypes of the hero, heroine and villain as old as mankind). Hollywood has always worked the way small towns do – like publishing does in London or New York. Those producers would have known quite a lot about George Lucas before they invested in him. I could be mistaken, but am guessing that clubbiness would have given him the creative license of a friend who was once so well-connected in literary New York that her publisher made no protest when she used the advance paid for a non-fiction book about wild animals giving birth to submit, instead, a romantic novel involving safaris and social justice.

A cautiously optimistic report last Saturday by Patricia Cohen, an author and arts & culture editor at the NYT, noted surging interest in online backing for artistic projects by small-scale investors being given credit for betting on and supporting talent. Many – if not most of these actual or prospective micro-investors — do not seem to know the artists they are helping.

Some consequences and implications of this particular route to aiding struggling artists are bothering me:

● Seeking and accepting money in advance can constrain creativity. Anticipating prospective backers’ anxiety about squandering even small sums on inconsequential, pig-in-a-poke projects, artists are puffing up their planned works and divulging details of visions that have yet to meet the challenge of execution. How much room for creative manoeuvring and play – or simply changing their minds – will they have when, to reward their micro-investors’ trust, they feel that they must treat proposals as promises?

● Whereas George Lucas had Ralph McQuarrie toiling over the supply of his mock-ups, artists are being diverted from their own work to create elaborate sales pitches – like the multi-media presentations of a bold new British book-funding and publishing site, Unbound. (See, for instance, this lively appeal by five women historians for their planned collaboration on Our Reigning Queens.)

● The clarity and precision required to design and deliver an investment pitch do not fit the fuzzy, dreamlike state that neuroscience is revealing to be ideal for creativity – as Jonah Lehrer has shown in his new book on the subject.  Yes, the fund-raising part of a creator’s life can be separated more or less from doing the actual work, but there is arguably too much inimical to the right frame of mind claiming our attention already — even for people keeping their distance from social media. As Lehrer puts it, ‘… we live in an age that worships focus—we are always forcing ourselves to concentrate, chugging caffeine’, even though this bias of the zeitgeist ‘can inhibit the imagination’.

● People are confusing micro-advances for art and literature with micropayments for  work that has been completed independently and put up for sale – like the small sums that authors of short e-books or long e-essays have begun to ask for, both independently and through conventional publishers.

Of course payments ‘upfront’ and for finished work are not mutually exclusive. But transferring the balance of cash-gathering sweat to work that has yet to be done is surely a bad idea.

There is some danger that disappointment with microfunding could lead to disenchantment with micropayments of every kind. That could delay the shift from conventional ways of selling art (through publishers, galleries and so on) to the liberating alternatives that new technological inventions have begun to bring us.

I am thinking once again of Threepio’s trans-gender leap. What if one of George Lucas’s backers for a Star Wars script financed by micro-investors had been an ardent feminist who contributed $500 for the pleasure of introducing audiences to a female robot in a key supporting role – and then had to confront  the horror – oh, the horror!  — of a gender re-programming?

… I say, let’s focus on using micropayments to make it easy for painters, film-makers, sculptors, writers, musicians and their kin to be paid for their ‘products’ — as easy as for developers of software apps for our portable electrovices. ( Sorry, that was meant to read, electronic devices.)

The market for apps has been booming. Why should someone who can afford to pay €3.47 — or its equivalent — for an electronic game app not part as readily with the same amount for a short story by an up-and-coming Gabriel Garcia Marquez, and be drawn inexorably, blissfully and unforgettably into an opening like this one, for GGM’s ‘Maria Dos Prazeres’:

The man from the undertaking establishment was so punctual that Maria dos Prazeres was still in her bathrobe, with her hair in curlers, and she just had time to put a red rose behind her ear to keep from looking as unattractive as she felt …

Do we need a campaign for micropayments to support ‘lyric perception’?

In Micropayments, Re-arranging publishing for the 5th Estate, The future of publishing on 12/03/2012 at 10:00 am

Photograph by MIL22

This helpless thing, lyric perception, is an authentic response to the world’s impossible contradictions which seem to resolve themselves, finally, as beauty. In fact, I believe that lyricism represents a form of courage, for it is the only response as thoroughly vulnerable as the jeopardized world itself is.

Patricia Hampl,  Spillville,  1987

'1 2 3 4 QUARTETTO b' MIL22

As more writers and artists without formal qualifications but with undeniable gifts find audiences for their work on the net, will micropayments finally take off?

By micropayments I mean fractions of €10 or $10 notes – or their equivalent – paid through a transactional service like Kachingle or Flattr to look at an image or video, read a text, or listen to a musical performance or composition. These are payments so minuscule that they barely register with our pocketbooks, but do earn their creators some measurable income in the aggregate.

Popular writers and artists would still far out-earn rivals who cater to more specialised tastes, but some of those appreciated by smaller audiences might be able to retain more of the earnings that they must give away, at present, to middlemen they cannot really afford to pay at all – intermediaries who rarely have the time or inclination to spend much time promoting their work.

So far, so-called Millennials – the generation in their twenties and early thirties now shaping our experience of the net — have shown little enthusiasm for micro-transactions. Their complaints about feeling cheated by corporate middlemen in the music business, when obliged to pay for the pleasure of  ‘sharing’ a song, are not completely incomprehensible.

But why are they so unenthusiastic about experimenting with micropayments — direct transactions between buyers and sellers?

Many ardent campaigners for the so-called ‘Freemium’ economy willingly pay small ransoms for the latest gadgets – even when these are only minor improvements or enhancements of last year’s versions, and are designed to fatten the profits of the hated capitalists. Few of them learn to cook simple meals from scratch: they are happy to pay huge mark-ups for bland microwaveable fare cooked and packaged by giant corporations, or to patronise  fast-food chains.

Why is it seemingly only art that turns them into Scrooges?

If more Millennials come to see themselves as artists, writers and musicians in years to come – using the democratic new publishing tools – will they become less unsympathetic?

Now, net-shunning Private Eye outranks even The Economist as Britain’s most popular current affairs magazine

In 4th Estate moves, Blogging and bloggers, Cooperatives, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The 5th Estate in action, The future of publishing on 05/03/2012 at 9:00 am

Ian Hislop, who has been Private Eye's editor since 1986

Private Eye cover, 12 April 2008

All hail Private Eye, whose circulation grew by more than ten per cent last year, when so many famous names linked to old media were — are — howling about print meeting its doom.

All hail Private Eye, not least because, as far as I can tell, no one in mainstream media has, on this occasion. There have been no laurel wreaths from its rivals, no adulatory editorials or delving into the reasons for its astonishing success since the Audit Bureau of Circulations released the latest figures in mid-February – although the media section of one broadsheet did carry brief news items on the subject.

All hail Private Eye because, in spite of its (affectionate) marginalisation as a ‘satirical magazine,’ it looks as if it could be becoming Britons’ most reliable source of printed information about what is happening in the UK — or close to that. The trade publication Media Week anointed it ‘the leading news and current affairs magazine by issue in the country, nearly 18,000 copies ahead of The Economist,’ with the minor qualifier that ‘its rival title is published weekly.’ (That qualifier is probably meaningless, since I reckon that most subscribers would be delighted to buy it once a week.)

There is no reason to disagree with the Eye’s managing director, Sheila Molnar, who explained two years ago that ‘People always turn to us in times of trouble because they trust us. With the MPs’ expenses row and the banks, people trust Private Eye and what they read in it.’

Though the Eye has no digital edition and is virtually ignoring the internet, its pages are saturated with the fearless, irreverent, outsider ethos of the web and blogging world – most obvious in its ‘Street of Shame’ column. There, as its editor Ian Hislop told Lord Justice Leveson in January at the official Inquiry into press culture and standards, his writers concentrate on the foibles of the 4th Estate — on

… stories about

journalists misbehaving. It tends to be anything from

making up stories, drunkenness, stealing stories from

each other, printing things that are totally and utterly

untrue, promoting each other for reasons that aren’t

terribly ethical, sucking up to their proprietors, being

told what to do by their proprietors, running stories

because their proprietors insist on it, marshalling the

facts towards a conclusion that they’ve already decided

on.

Private Eye’s robustness confirms these suspicions at post-Gutenberg about the secrets of media thriving in the transition to the 5th Estate – in its case, with only token contributions to its operating budget from advertisers, which is why it cannot afford to give away its contents on the net:

It is strictly non-partisan

The political left, right and centre are all flayed with equal relish. As noted here last month, highly-placed apologists for a worrying shift in 4th Estate practices feel that there is nothing wrong with abandoning political neutrality – but a reader poll on the site of The Economist shows that this is, overwhelmingly, the very opposite of what the public wants.

It is – without fear or favour – supplying the uncomfortable, true facts indispensable to government by the people, or what we call democracy

It might just as well be called The Whistleblower Wire. It tackles malfeasance as no other publication does, across a staggering breadth of public life. A small sample: ‘Called to Ordure’ (parliamentary proceedings); ‘Medicine Balls’ (mainly, the National Health Service); ‘Signal Failures’ (the railway network); ‘The Agri Brigade’ (farming and food policies); ‘Rotten Boroughs’ (local government); ‘Music and Musicians’; ‘Keeping the Lights On’ (the law and lawyers); ‘Books and Bookmen’ (cronyism in book publishing).

It relies on its readers for its peerless investigative reporting

… and did so long before the internet came along with its promise of building reader ‘communities’.  As Ian Hislop said in his Leveson evidence, his magazine

operates as a sort of club where people not only buy the

magazine, they write a lot of it, which is the principle

we work on. Broadly, the sources come from people

inside their professions, so the medical column, the

column about energy, the pieces in the back, a lot of

those are given by people directly involved.

None of its content is influenced by advertising

As it does not run on the advertising-centred business model for publishing — unlike virtually every other great name in print journalism — it has no need to court or bow to corporate panjandrums and satraps, and its articles are not distorted by their manipulations.

Its success underlines the undesirability of concentrated media ownership, as it has the extreme editorial independence only possible when a publication is not beholden to any single media mogul or proprietor trading favours, buying influence, or vulnerable to manipulation or blackmail

In some ways, Private Eye can be seen as an early prototype of the ‘keiretsu-cooperative,’ a model for post-Gutenberg publishing  in which sites are co-owned with clubs of reader-contributors. Its Wikipedia entry lists no fewer than seventeen shareholders, and says that the magazine has never disclosed exactly who has contributed what to its capitalization and upkeep.

What is an instance of this magazine’s uniqueness and indispensability? The other day, when all the broadsheets reported that the education secretary, Michael Gove, had condemned the Leveson Inquiry for its ‘chilling effect’ on the media, they failed to explain why he was complaining so bitterly about an investigation initiated by his own leader, David Cameron, and in the same tirade, lauding Rupert’s Murdoch’s launch of the Sun on Sunday. They also offered not a single example of what noble journalism the Inquiry has supposedly been inhibiting — just as he failed to do.

Mystification over all that was beginning to make me feel mildly unhinged when the latest Eye arrived. There I discovered that the education secretary is married to  — well, well, well, a journalist on the Times. And who owns the Times? Let us say, a certain Australian-born media mogul.

And, returning briefly to the subject of ownership … As diligent use of both inductive and deductive logic has yet to yield incontrovertible proof of his existence, I must reluctantly dismiss as speculation all hints to the effect that Private Eye does in fact have a proprietor — a reclusive individual writing occasionally under the rubric, ‘A Message From Lord Gnome’. The same goes for any suggestion that he is simply too shy or coy to (a) scotch rumours that his life’s ambition is to be more elusive than the putative Higgs boson particle, and (b), admit that he has no help from ghostwriters in recording his sublime meditations, as on the subject of the recent fate of bankers:

[W]here, we must ask, will this witchhunt end? Which other leading figures in the economic life of our country will be next to be hunted down, to be publicly humiliated, as their names are execrated across the land?

Should ordinary citizens be denied a say in the media’s future — as in, ‘For legal reasons, this article will not be open to comments’?

In 4th Estate moves, Blogging and bloggers, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The 5th Estate in action on 27/02/2012 at 11:00 am

Are cover-ups and the suppression of debate growing more frequent in the world's proudest democracies? Photograph by Amita Chatterjee

This is no ordinary elephant in the living room, the one the media are pretending not to see. She is pirouetting on stiletto heels in the shortest skirt ever sewn, displaying elephantine slabs of thigh. Still they behave as if she is invisible.

Recent events in England – which gave the rest of the world the model of a free press – are sending shivers up the spine of anyone who cares about democracy, from Calcutta to San Francisco and beyond. This is because of the eerie, silent void where you might expect round-the-clock media coverage of the media’s strategies for preserving their freedom and independence — on their terms.

Any attention paid to this struggle by the British press has focused on the tabloid phone hacking scandal, and just that part of a far wider judicial investigation of professional standards and practices, the Leveson Inquiry ordered by the prime minister.

Shameful and appalling as the hacking sagas are, they matter far less than the pachyderm in the parlour – on a par with the news earlier this month of Google being forced by the government of India, the world’s largest democracy, to cooperate with censoring web pages after ‘weeks of intense government pressure for 22 Internet giants to remove photographs, videos or text considered “anti-religious” or “anti-social”’.

That question no one in the media apparently wants to face is, will the public grant professional journalists a continuation of special privileges in the digital age if they no longer adhere to the traditions of fairness, neutrality and dedication to the truth that won them those privileges in the 18th century? Earlier this month, this blog mentioned the media’s refusal to acknowledge – or indeed discuss at all – the public’s dismay about an increasingly partisan press.

There are other alarming silences. Why, for instance, is no one in the British media mentioning the prohibition by a leading newspaper of free discussion – by ordinary citizens – of the future of the press, on three separate occasions last week?

In each case, a member of the Establishment – one high-ranking politician and two journalists – addressed the jubilation in the British press about Rupert Murdoch redux; many journalists only care about their belief that he is saving jobs in journalism. The media mogul who should have been fatally wounded by the hacking scandal is throwing his octogenarian energy into engineering a comeback with a new paper, the Sun on Sunday. None of these writers spared Murdoch the lash. Two of them delivered blistering warnings about the dangers of condoning this latest power-grab and about the perils, for British democracy, of concentrating media ownership in a few hands — especially, his.

Nothing in their excoriations suggested that they feared any legal retribution from Murdoch or his empire, News International. And yet each of these articles appeared on the portion of a newspaper site titled Comment is Free, advertised as a debating forum open to all, with an announcement that, For legal reasons, this article will not be open to comments’.

In that case, why were the Murdoch bashings put on this part of the newspaper’s site at all?

Could the real message behind blocking readers’ reactions be that the newspaper’s editors believe that only they and their colleagues have a right to discuss the redesign of the ‘media landscape’ – even though most British citizens still rely on the press to give them the facts a democracy needs to make decisions that affect its collective wellbeing?

This blog has recorded the same newspaper’s censorship of readers’ posts about media reform in its Comment is Free section (see the entries on 7 November and 15 November). The paper gives no sign of having absorbed the salutary reminder by the Lord Chief Justice, Lord Judge, last year that

[i]t is the birthright of the citizen that the press should be independent. It is therefore not a right of one section of the community, not just a sectional right. It is the right of the community as a whole. It is, if you like, our right, the right of every citizen.

Here are opinions that the Guardian refused to allow its readers to discuss on its site – without any explanation that made sense (Kafka-esque, for real?):

Item 1: extracts from an article titled, ‘We must fashion a new media landscape,’ by Norman Fowler, a former chairman of the House of Lords communications committee.

… Murdoch remains the traditional proprietor. From his New York headquarters he will continue to have his say in the politics of the United Kingdom – and make no mistake, there will be politicians who will play along with this. […] So we are back to where some of us began. Last summer we were within days of the culture secretary waving through the Murdoch bid to take full control of BSkyB and claiming that phone hacking was an entirely separate and irrelevant issue. That fate has been avoided, but the challenge remains to devise a system where nobody – Murdoch or anybody else – has a disproportionate share of the British media. […W]hat is a disproportionate share of the media market? Four newspapers controlling almost 40% of national press circulation and total control of a major television company would have put Murdoch the wrong side of the line. […] Any new rules on share of voice cannot be directed exclusively at News International. The BBC must come within the net as too must the other media giants like Google.

[…]

• For legal reasons, this article will not be open to comments

Item 2: extracts from an article titled. ‘If the Sun on Sunday soars Rupert Murdoch will also rise again,’ by Polly Toynbee.

[P]ractitioners are hired to do their masters’ bidding, even when that can mean spreading disinformation and disregarding evidence. The seventh Sun will offer jobs to those willing to put their pens to abusing migrants, travellers, trade unionists, single mothers, women, the unemployed, public sector staff, young people, Europe, foreigners or anyone to the left of John Redwood. Even the disabled are now being harassed as scroungers to win public support for benefit cuts reducing the already poor to penury.

[...]

Clouds of opposition are gathering around the Leveson press inquiry. Its remit grows, destination unknown. The Campaign for Press and Broadcasting Freedom, along with many others, are right to demand that it leads to new laws to reset limits on media ownership by any one organisation, which Margaret Thatcher abolished for Murdoch’s sake. If the Sun on Sunday soars, [Murdoch] will be back owning some 40% of press readership, plus Sky (to whom the BBC is wrongly obliged to pay £10m a year).

The Sun and its owner’s influence on British politics have been underestimated in the history of the last decades … […]

For legal reasons, this article will not be open to comments @commentisfree

Item 3: extracts from an opinion piece titled, ‘Rupert Murdoch’s Sun on Sunday sets on his empire,’ by Michael Wolff.

Curiously, he used […] the arrests of senior Sun staffers on suspicion of bribing the British police – as the crisis that justified the new Sun. The immediate launch of the paper, just days after he arrived in London, would be a way to stabilize an impending civil war in Wapping, he insisted – even as his own investigators continued to turn over evidence to the police. It would be a way, too, to shift attention from the negative to the positive, from retreat to advance.

[…]

Of course, all the investigations continue, the law suits mount, the US Justice Department is at attention, and, next week, public television in the US is promising an explosive new documentary on the Murdoch scandals, which will, in a sense for the first time, bring the story in all its details to the US.

[…]

• For legal reasons, this article will not be open to comments

There is no doubt that the Guardian is furious with Lord Justice Leveson, who asked at the official commencement of his Inquiry, ‘Who guards the guardians?’ Last week, the news that British judges would be rating British lawyers for their performance in court gave the newspaper a chance to play tit-for-tat in an editorial that remarked, ‘Advocates might reasonably ask who is judging the judges’.

No one watching the Leveson hearings could fail to be struck by this judge’s open-mindedness, or by the deference and respect he shows witnesses. He comes across as genuine when he asks for their opinions of what should be done about the media’s failed self-regulation – and is frank about not knowing how to resolve the dilemma that follows from the all-but-universal dislike of proposals for statutory control.

He seems keenly aware of the media’s annoyance with interference with what they see as their business – and sympathetic. But from the odd remark he has let drop about the importance of allowing free discussion – for instance, that statements made on social networks such as Twitter must be counted as mere chat, and not held to the same standards as professional reporting – it seems unlikely that he would disagree with Albert Einstein about the undesirability of letting a wealthy or powerful few control the dissemination of facts and opinions for the many.

It feels not a little odd to be quoting the great physicist’s essay, ‘Why Socialism?’ for the second time this month. But there is a rather stunning parallel between present events and his noting, in 1949, that ‘Clarity about the aims and problems of socialism is of greatest significance in our age of transition. Since, under present circumstances, free and unhindered discussion of these problems has come under a powerful taboo …’.

This was the most vital point he wanted to impress on his readers:

[U]nder existing conditions, private capitalists inevitably control, directly or indirectly, the main sources of information (press, radio, education). It is thus extremely difficult, and indeed in most cases quite impossible, for the individual citizen to come to objective conclusions and to make intelligent use of his political rights.

Now, as I was saying, about that elephant

Why a keiretsu-cooperative is a gentle transition for old media — and how about saying, ‘an exaltation of bloggers’?

In 4th Estate moves, Blogging and bloggers, Cooperatives, Re-arranging publishing for the 5th Estate, Social media and networking, The 5th Estate in action, The future of publishing on 21/02/2012 at 9:27 am

Parallel and convergent thinking about co-ownership

What’s in a name?

A lot, I suspect, when the subject is cooperatives.

Writers delete or tear up drafts, painters scrape paint off canvases that refuse to match the visions of a mind’s eye – and versions of co-owned enterprises, surely hundreds of thousands of them over the years, have ended up on some equivalent of the cutting-room floor.

But associations with failures of the past should hardly be allowed to stain the excellent solution cooperatives could be. Certainly not now, when – as noted on post-Gutenberg last week in a post about Facebook – the World Wide Web is proving to be a matchless engine for running them, and getting around the classic banes of collaborative ownership and administration.

What if our name for these organisations has become the chief enemy of their promise? Should we call them something else? Say, leaps – as in a leap of leopards, to convey a  jump in the right direction for co-ownership and co-action? Peer-to-peer pods, anyone? Straightforwardly, collaboratives? Or just flats, perhaps, as shorthand emphasising that these are anti-hierarchical, anti-authoritarian and decentralised structures.

The next few years should see the evolution of specialised terms for variations of such online organisations – or simply net-related groupings – that meet different needs. I have for some time been fondly considering an exaltation of bloggers for our key-tapping multitude, in a nod to the seductive title of James Lipton’s book about collective nouns, An Exaltation of Larks.

Since last week, search engines have led me to others who think that Facebook should be turned into a cooperative – although there was little open support for this suggestion when it was first proposed under the screen name ‘postgutenberg’ last September in a comment beneath David Mitchell’s semi-serious call for the ‘nationalisation’ of the social mega-network. (That comment, too, was inexplicably censored by The Guardian, but I have a copy of the page as it was before the axe descended.)

A writer for Reuters, Paul Smalera, carefully set out the reasons why a collaboratively owned and run Facebook makes sense:

Why not share the company itself? It’s fine to talk about technology’s power to change the world if you’re the one who’s going to profit from it. But this isn’t really a change […] it should become a nearly one-of-a-kind company for the technology sector: a co-op.

[…]

Facebook wouldn’t be forgoing its fundraising if it abandoned its IPO and became a co-op. [...] In Facebook’s virtual community, its 845 million users could easily pay a small sum — say $5 in the U.S. and some locally adjusted equivalent in other countries — to become an owner. Some of that money would be used to buy out existing stock owners and set up the new management model — it would still have Zuckerberg as CEO with a management team, but with the same one vote that every other member has. Over time, if Facebook’s owners keep the cost of becoming a member as low as possible without in any way starving the site for cash, Facebook could even become the world’s first trillion-dollar company — just in a way no one has ever previously imagined.

He went on to give even more specific suggestions for how it might operate:

Facebook already offers voting tools, organization pages, recommendation links, polling, etc. With the help of a management team and committee structure, it would be pretty easy to let members assign themselves to committees and shape Facebook into the community they want it to be.

[…]

[T]hink of a sample proposal. Say a user wants Facebook to give 10 percent of its income to charity.

1. She creates a new page and persuades her friends to follow it. The page holds the pro and con discussions of the proposal.

2. After hitting a certain threshold of followers, the page makes the Revenue Committee agenda, where a subcommittee is assigned to study its feasibility and write a summary about the proposal’s impact on Facebook, including how it would affect the bottom line.

3. The committee then votes on the summary — if it’s approved, it goes into a general Facebook meeting, where the entire user base gets to vote. […]

Commenters on the Smalera piece were understandably pessimistic about the chances of Mark Zuckerberg handing over Facebook to its members. So was a colleague of his, Edward Hadas, in a critical but beautifully balanced consideration of his arguments a few days later. He concluded on an encouraging note:

[T]he limited success of the cooperative movement does not equate to a resounding triumph for its ideological opposite – the shareholder value cult. If profits were all that mattered for the economy, then more than a quarter of all American workers would not be employed by enterprises that function, often quite well, without profit motive – 17 percent by governments and another 11 percent by private, not-for-profit, organisations.

[…]

In organising the economy, greedy schemers and utopian dreamers are not the only alternatives. Like well-run government agencies and prudent shareholder-owned companies, well-designed cooperatives can be efficient servants of the common good.

The expectation of resistance to a pure cooperative explains why the keirestu-cooperative — first proposed two years ago for the evolution of publishing – does not entail starting a co-owned enterprise from scratch.

It lays out, instead, a scheme that amounts to a halfway house for old print media moving into the future. A newspaper publisher could experiment with sharing ownership of a segment of its site with readers paying small sums for their subscriptions or shares. This section would ideally be one in which readers already contribute most of the content today, in their role as commenters.

As part of the experiment, the co-owners would share any profits from advertising attracted to the trial site, which would give them an extra incentive to lure more readers and part-owners to it.

Setting up such a site – starting with software design and registering co-owners – would cost money. A newspaper publisher could share that, and the expense of site administration, by entering simultaneously into a funding partnership with, say, a book publisher catering to essentially the same audience.

That would make for a collaboration resembling the loose affiliations between firms that the Japanese call a keiretsu.

People who reject that word as too exotic need to know that it is easy to say – ky-ret-su – and should remember that there was a time when we were just as frightened of the word karaoke, which has since become as unremarkable as pizza.

The scheme is all. A keiretsu-cooperative by any other name would be fine by me – as long as someone, I mean, some few, are brave enough to try it out.

A better Facebook — or why cooperatives run on the web should work better than the old hippie kind

In Blogging and bloggers, Cooperatives, Social media and networking, The 5th Estate in action, The future of publishing on 14/02/2012 at 12:00 am

‘Sometimes it lasts in love, but sometimes it hurts instead.’ When the music suddenly breaks from its expected pattern, our sympathetic nervous system goes on high alert; our hearts race and we start to sweat … [E]motionally intense music releases dopamine in the pleasure and reward centres of the brain, similar to the effects of food, sex and drugs.’

Anatomy of a Tear-Jerker,’

Michaeleen Doucleff,  The Wall Street Journal, 11 February 2012

Digesting a grisly dissection of the bio-chemical effects of romance set to music in a financial newspaper told me that February the 14th can only become a more diabolical conspiracy between commercial and scientific calculation.

No sooner had I slogged through the neuroscientific perspective on l’amour than I found an email message from Hewlett-Packard offering me a 50 per cent discount on printer ink with the coupon code ‘HPLOVE20’. The promotion was not stingy with fake sentiment: ‘Our adoration for you is lasting – this offer is not.’

And there you have the reasons why post-gutenberg.com would rather dedicate today not to courtship or its consequences but to the perfect potential marriage of means and ends that we have in the World Wide Web — for redesigning the way companies make money from social networking.

The plan for this Alternative Valentine’s Day was inspired by reading Deborah Orr’s thoughtful anti-Facebook protest in The Guardian last week:

“While the US was extolling the virtues of neoliberal corporatism […] Tim Berners-Lee was inventing the world wide web, and gifting it to the planet, for people like Mark Zuckerberg to exploit.”

And to make sure no one had missed the significance of what she said, commenters on her piece underlined its essence:

Not sure how many will realise that what Deborah is saying amounts to this:

(i) Tim Berners-Lee, while working as a research scientist in Geneva, gave us all the World Wide Web for nothing

(ii) Facebook users are giving the world information about themselves for nothing

(iii) Mark Zuckerberg came along and used Tim’s and everyone else’s generosity to everyone else to make a pile for himself.

1 extremely remarkable member of the 1% indeed.

When will the average Facebook user catch on?

That users are beginning to grasp the dimensions of the Facebook heist – in plain sight and with the full cooperation of its victims – is clear from  newspaper articles elsewhere:

Facebook Users Ask, ‘Where’s Our Cut?

Nick Bilton

The New York Times

February 5, 2012, 11:00 am

SAN FRANCISCO — By my calculation, Mark Zuckerberg, Facebook’s founder and chief executive, owes me about $50.

Without me, and the other 844,999,999 people poking, liking and sharing on the site, Facebook would look like a scene from the postapocalyptic movie “The Day After Tomorrow”: bleak, desolate and really quite sad. (Or MySpace, if that is easier to imagine.) Facebook surely would never be valued at anything close to $100 billion, which it very well could be in its coming initial public offering.

So all this leaves me with a question: Where’s my cut? I helped build this thing, too. Facebook laid the foundation of the house and put in the plumbing, but we put up the walls, picked out the furniture, painted and hung photos, and invited everyone over for dinner parties.

Some of Deborah Orr’s commenters – or at least one – thought the remedy for this injustice obvious:

[ lightly edited for repetition ]

[W]e need to start a movement to turn Facebook into a giant cooperative — in which the users make up the rules, and personal information is not sold to anyone.

[…]

Alternatively, …I have heard that a new, improved Mark Zuckerberg wants to be perceived as a force for good in society — and that he is clashing with the strictly business-oriented senior executives in his company over this…. If he’s serious, why not acknowledge that Facebook’s users supply the personal information about themselves that he has exploited to get rich — as Deborah Orr says — and that this is deeply wrong, …and flip ownership of his company over to Facebook’s members?

Lots of us had our first encounters with cooperatives in the 1970s — as places owned and run by early evangelists for whole-grain and organic foods that were hard to find anywhere else. Sometimes, those hairy hippies operated cafés where you could eat earnest, do-gooder sandwiches fringed with medicinal bean sprouts and tasting like specially aged damp sawdust.

Many such organisations disintegrated because of warring and secretive factions that did not always share what they knew; slow communication between members; the logistical difficulties that meeting in person often entailed, and confusion about aims and aspirations.

For cooperatives using these digital thingies we all have now, many of those problems would never arise.  The new tools make it easy for everyone to see the same information, and to spell out goals and policies crisply. And, as the same commenter said.

To run an organisation designed as a cooperative, everyone involved could study complex new information together online, and decide questions at the blinding speed that, … for instance, … The Guardian’s opinion polls work on this very site.

Consider, please:

‘the scheme of social organisation which places the means of production of wealth and the distribution of that wealth into the hands of the community.’

That is a dictionary definition (Chambers) of what became a dirty word for many of us, because the idea was so corrupted in its execution. Yes, I mean, socialism.

But that was before this means of communicating and transparent  decision-making was invented.

A hybrid between socialism and capitalism is what we need as a transitional scheme, and you can download a no-holds-barred exchange on that subject here (a free download: see the comments and response to them at the end, if in a hurry): The Keiretsu-Cooperative: a Model for Post-Gutenberg Publishing http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1532173

Well alright, I’ll admit that those comments closely echo sentiments expressed on this blog. They might even have been made by the same tiresome blogger.

Cooperatives sound embarrassingly utopian. But they are the finest examples of socialism in action that we have. An earlier entry in this spot quoted an authority on the subject saying that in the U.S., capitalism’s Mecca, 13 million American already work for these organisations.

Some people react to philosophical nudges in that direction with a silence in which you can almost hear them thinking, ‘But who are you to propose evolutionary possibilities for business?

Actually, nobody. But Albert Einstein anticipated this little difficulty. In a 1949 essay, ‘Why Socialism?’,  he reached far back into history to analyse people’s reluctance to break out of well-established patterns, noting:

The priests, in control of education, made the class division of society into a permanent institution and created a system of values by which the people were thenceforth, to a large extent unconsciously, guided in their social behavior.

But, as he said in his conclusion,

[W]e should not assume that experts are the only ones who have a right to express themselves on questions affecting the organization of society.

Where is it engraved in stone that Facebook has to be owned by a wealthy 1 per cent enriched by the 99 per cent sharing their private information as unquestioningly as feudal serfs?

Leveson hearings: can a ‘blind and unreasoning’ or partisan press censoring citizen-journalists be good for democracy?

In 4th Estate moves, Blogging and bloggers, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The 5th Estate in action on 07/02/2012 at 11:00 am

'Censor' was a Roman invention, but 'censorship' was virtually co-invented with the Gutenberg press -- Photograph by Amita Chatterjee

[ Addendum, 23 February:

Although The Guardian has unquestionably deleted courteous posts about proposals for press reform and media evolution from the Comment-is-free section of its site, as recorded on this blog on 7 November and 15 November, I might owe that newspaper an apology for suggesting in the entry below that its moderators broke links to post-gutenberg.com posted on its site in January. Please see the footnote** for details.  ]

A remarkable statement went unnoticed by the few commentators on a morning of superb theatre at the Leveson hearings on press practices, culture and ethics in Britain on 31 January.

As noted earlier on this blog, press coverage of the Leveson Inquiry has been scant. It has focused on tabloid phone-hacking and emphasised paeans to press freedom by well-known witnesses, but under-reported criticism of the media (for instance, the excoriating but mostly well-founded testimony of the former journalist and prime ministerial communications adviser Alastair Campbell.)

Giving evidence last week, Christopher Meyer, the former chairman of the Press Complaints Commission – a body roundly criticised for being too close to newspaper editors to handle accusations against them objectively — said in a fleeting aside that the press is free to be partisan in a democracy. He said that as if stating a self-evident truth, accepted as such. I could not find any record of his remark in the transcript of the proceedings, but there was this exchange between the ex-chairman and his surgically incisive interrogator, Robert Jay QC.

Q: … I think the point you’re making there is that the press is free to comment and be partisan and it’s not the role of the PCC in a democracy to seek to curb that democratic activity?

A:  Yeah, that’s fair enough.

That could stand as a marker for the extent of the shift from the last century’s ideal of a neutral press to one in which the media openly take sides – or, as The Economist put it last July, are becoming ‘more opinionated, polarised and partisan’.  Not the faintest note of doubt intruded on the former PCC chairman’s declaration or confirmation of his position on partisanship, even though media bias is not what the public wants, if we can take as representative the 73 per cent of 2,700-odd Economist readers who have so far voted ‘yes’ in answer to the question, ‘Should news organisations always remain impartial?’. Bias has rightly been worrying experts like this political scientist, who asked in 2010 on ‘a plain blog about politics‘:

Will we have a robust, vigorous, and almost completely partisan press?  Will there still be a place for neutrality?  How will this play out for state and local politics?  What kinds of norms will the partisan press develop?

Some of us who have noticed the British and American press grow more aggressively one-sided in recent years cannot help wondering whether that has meant getting fewer of the objective reports and facts that a democracy needs to make good decisions about policies and politicians.

Partisanship is disturbing in itself, when you consider the dictionary definition of ‘partisan’ as ‘adherent, esp. a blind or unreasoning adherent’ (Chambers, 2006).  How can it be consistent with this classic list of guidelines for journalists doing their ‘duty of providing the people with the information they need to be free and self-governing’ – from Bill Kovach and Tom Rosenstiel in The Elements of Journalism:

1. Journalism’s first obligation is to the truth.

2. Its first loyalty is to the citizens.

3. Its essence is discipline of verification.

4. Its practitioners must maintain an independence from those they cover.

5. It must serve as an independent monitor of power.

6. It must provide a forum for public criticism and compromise.

7. It must strive to make the significant interesting, and relevant.

8. It must keep the news comprehensive and proportional.

9. Its practitioners must be allowed to exercise their personal conscience.

Some of us have noticed ways in which partisan has begun to mean punitive – as in censoring healthy disagreement and opposition.

If we accept that a newspaper has the right to push a particular agenda at us, does that give it the right to stifle dissent about that agenda – from, for instance, citizen journalists, which all of us become when we react to articles in the comments sections of the online press? Moderators at online sites attached to famously liberal and left-wing mastheads unhesitatingly delete comments that challenge the biases of those newspapers, even when phrased cautiously and politely. (See ‘Why is The Guardian censoring debate about press reform and ignoring the Lord Chief Justice’s endorsement of citizen journalism?’)

There is proof that I am not alone in wondering about this in the Wikipedia entry for ‘Media democracy’ – a concept that elicited a curious response from an editor at the New York Times, mentioned in this spot last month.

The concept of “democratizing the media” has no real meaning within the terms of political discourse in Western society. In fact, the phrase has a paradoxical or even vaguely subversive ring to it. Citizen participation would be considered an infringement on freedom of the press, a blow struck against the independence of the media that would distort the mission they have undertaken to inform the public without fear or favor… this is because the general public must be reduced to its traditional apathy and obedience, and frightened away from the arena of political debate and action.

Addressing the Alpach Technology Forum in Germany last August, William Dutton, the outgoing director of the Oxford Internet Institute, identified ‘Journalists and the Mass Media – imitating, co-opting, competing,’ as one collective enemy of  the 5th Estate, which includes citizen-journalists. (See ‘The Future of the Internet for Networked Individuals of the Fifth Estate’.)

If not for Justice Leveson and his supremely necessary investigation, I might have been depressed by the results that came up when I typed into search boxes the once-hallowed phrase, ‘Without fear or favour’. It encapsulated a consensus among the most admirable practitioners of journalism about the importance of rising above partisanship.  When I used the English spelling of the word ‘favour’, the first Google results page brought up scarcely any links to sites unconnected with Africa, New Zealand, Australia or Malaysia. With American spelling, dropping the ‘u’, the first page of findings did supply links to sites related to the U. S., but too few of them led to anyone expressing the outrage about the increasingly hollow sound of those words that I had hoped to see.

A press that no longer sees neutrality as essential to democracy in the west would explain why some of us have been given our first visceral impressions of what samizdat resistance under the old Soviet Union felt like, as commenters repeatedly censored – improbably enough – by The Guardian, a standard-bearer for liberalism.

Since I published these posts deleted by that paper on this blog on 7 November and 15 November, interference with my comments appears to have turned covert.

In the last two weeks, every link to this site posted in comments there has been broken either by Guardian moderators or by some profoundly mysterious line of rogue code in the newspaper’s software. (Anyone curious enough to run a paranoia test can search on  ‘CheryllBarron’ beneath Peter Guillam’s contribution, ‘The capitalism debate is anaemic – it must dig deeper‘.  Compare the results from pasting the URLs I have posted there into your own browser with clicking on the same URLs on the Guardian page – which only leads to variations of ‘Oops! Page not  found’.)

‘Censor’ is a word that came to us from the Roman Empire – although it mainly alluded to a lofty being entrusted with conducting the census and guarding public morality. ‘Censorship’ was a novelty that the Gutenberg press spawned. As the historian John Hale has explained,

It was in Germany, where printing was pioneered, that censorship was first introduced. In 1475 the University of Cologne, jealous of the freelance expression of ideas, obtained from the Pope the right to grant licences for the publication of books and to punish those who published or read unauthorized ones.

[…]

By [1515] the flood of books and the realization that a new, less instructed and more excitable audience for them was being reached, moved a number of European secular authorities to insist on manuscripts being submitted to them before printing.

Who could have predicted a punitive partisan press being allowed – so far – to get away with silencing democratic opposition in our own media revolution, five centuries later?

______________________

** Links to post-gutenberg.com yielding a ‘not found’ notice

Since I reported on what appeared to be a novel form of censorship, I have discovered the identical problem on this WordPress site. Something has been – inconsistently – inserting an extra ‘http’into texts of mine where there should be only one in each URL, with results like this (the unwanted duplicate is highlighted in bold):

‘<a href=”http://http://www.levesoninquiry.org.uk/”><span style=”text-decoration: underline;”>

This curious repetition disables the link. A technical support specialist at WordPress has so far been unable to trace the trouble to its source – or explain it.

Until the investigation is concluded, I feel I owe The Guardian the benefit of the doubt – and an apology for an unjust accusation.

I hope to know more soon.

Publishing and the gatekeepers’ understandable fear of the penalty: what if we vetted and corrected people before they could speak?

In Re-arranging publishing for the 5th Estate, The future of publishing on 30/01/2012 at 12:15 pm

Imagine that you were an editor at a London publishing house, circa 1930 — effectively a gatekeeper at the sacred portal of literature. Would you give these lines an up or down vote?

Extract 1    [ from a poem sent to Thomas McGreevy, 4 November 1932 ]

see-saw she is blurred in sleep

she is fat she is half dead the rest is freewheeling

past the black shag the pelt

is ashen woad

snarl and howl in the wood wake all the birds

hound the whores out of the ferns

this damnfool twilight threshing in the brake

bleating to be bloodied

this crapulent hush

tear its heart out …

Extract 2    [ from a poem sent to Thomas McGreevy, 13 May 1933 ]

Donabate sad swans of Turvey Swords

pounding along in three ratios like a sonata

like a reiter [for ritter] with pummeled scrotum atra cura on

the step

Botticelli from the fork down pestling the transmission

tires bleeding voiding zeep the high road

all heaven in my sphincter

müüüüüüde now

potwalloping now through the promenaders

this trusty all-steel this super-real

bound for home like a good boy

where I was born with a clunk with the green of the larches

oh to be back in the caul now with no trusts

no fingers no spoilt loves

belting along in the meantime clutching the bike …

I found those parts of drafts of Samuel Beckett’s poetry (included in his magnificent collected letters) invigorating, even when they were not forcing bursts of oxygen from uncontrollable laughter into my lungs. My fingers danced, typing out thought-streams nearly eighty years old. Yet it is strange to consider that even now, they would earn their author, as a writer still unknown, a long string of rejections.

Because modernism was well established decades before most readers of this blog and I were born, you might take it as a foregone conclusion that Beckett’s wordy jiggle-juggling would delight any lover of literature. But in literary chat forums on the net these last few years, I have been surprised to find that too many arbiters in high positions in publishing or the teaching of literature still dismiss rambunctious free verse very like that – when unattached to any famous name – as nonsensical, pretentious or illiterate (or all three).

Why they do that would take a conversation of several pots of coffee to sort out. All I will say, for the moment, is that every day, it becomes more absurd to think of anyone being paid to decide what collections of words and thoughts should be admitted to the public domain and backed with large or small sums of money, and marketing sweat.

Pity the poor gatekeepers. They must decide which texts meet the prevailing literary standards. They must both cater to contemporary taste and anticipate its evolution. They risk becoming Frank Sinatra mocked for pontificating that ‘Rock ‘n’ roll has no future.’

What if people’s accents, intonation, vocabulary and grammar were vetted and corrected every time we opened our mouths to speak? … Well! Now that everyone can tap out unmediated texts in some form all day long, that is exactly how absurd the gatekeeping enterprise in publishing will soon seem — in a future so close that it is very nearly our present.

In addition, only fools setting up as publishers will presume to decide what is appropriate reading matter for whom. This has been on my mind since I read the following paragraph on the New York Times site yesterday:

In 1962, when “A Wrinkle in Time,” after 26 rejections, was acquired by John Farrar at Farrar, Straus & Giroux, science fiction by women and aimed at female readers was a rarity. The genre was thought to be down-market and not up to the standards of children’s literature — the stuff of pulp and comic books for errant schoolboys. Even today, girls and grown women are not generally fans. Half of 18- to 24-year-old men say that science fiction is their favorite type of book, compared with only one-fourth of young women, according to a 2010 study by the Codex Group, a consulting firm to the publishing industry. And while a sizable portion of men continue to read science fiction throughout their lives, women don’t. Thirty-two percent of adult male book buyers are science-fiction fans compared with only 12 percent of women. When Joanna Russ, one of the few successful female science-fiction writers, died last year, her obituary in The New York Times referred to her as a writer who helped “deliver science fiction into the hands of the most alien creatures the genre had yet seen — women.”

A Wrinkle in Time is a children’s book by Madeleine L’Engle that went on to win more than one literary prize. It has never been out of print.

Yes, stories like this are tediously familiar. Why should anyone but the author of a text be asked to bet on whether it can defy stereotypical reader choices?

Approaching the keiretsu-cooperative: Nick Clegg, Jaron Lanier, and a bold move at Ladies’ Home Journal

In 4th Estate moves, Blogging and bloggers, Cooperatives, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The 5th Estate in action on 24/01/2012 at 9:18 am

… Now and then, as in this week’s entry, post-gutenberg.com will spotlight signs that the keiretsu-cooperative — a structure for co-owning media — is an idea whose time has come …

Ladies' Home Journal: Art Deco cover, 1922

Media maidens venturing boldly into the future

That the Ladies’ Home Journal – an American magazine founded in 1883 – was still being published at all came as a bigger shock than reading about its plan for avoiding extinction. It is a title I have only ever seen mentioned in biographies of writers and political history, but it apparently has a circulation of over three million. A headline caught my eye:  ‘A New Ladies’ Home Journal Written Mostly by Readers’.

Aha! I thought, could that signal an evolutionary leap in the treatment of  ‘user-generated content’? Had I stumbled on the experiment in co-owned media that is long overdue, for some of us – as a first stage of true media reform?

No it is not, but that could conceivably be the next stage of the LHJ  plan. From its March issue onwards, the magazine is to be filled with articles by amateurs paid at professional rates, whose facts will be checked by the editors. The publisher, Diane Malloy, explained that

research showed the magazine’s readers wanted more of their voices reflected in the content and to feel as if they belonged to a community.

If the LHJ  were to go on to give readers a stake in the magazine, that would ensure far more passionate commitment and loyalty to their community.

Nick Clegg

A speech for the ages by Nick Clegg

Co-owned media got an indirect vote of confidence from Nick Clegg, Britain’s deputy prime minister,  in a 16 January speech more thoughtful than any set of utterances by a politician I have seen for a long time. What he proposed, addressing business leaders in the City of London– no less – is the most intelligent solution to the widening social inequality on which the Occupy movement has focused our attention. Somehow, that clear implication of what he said went largely unreported in media coverage of the event.

[W]e … need a better distribution of power within our economy.

… [I]t’s not just shareholder power that matters. Ultimately investors seek profits … Some enlightened shareholders might see the benefits of a well-rewarded workforce, but the people best placed to look after the interests of staff are staff. And that is what, so far, has been missing from this debate: ordinary people.

[W]e don’t believe our problem is too much capitalism: we think it’s that too few people have capital. We need more individuals to have a real stake in their firms. 

Readers of this blog will know how closely aligned his conclusions are with ideas expressed here – in ‘Wanted: a brave newspaper for an experiment in which readers become stakeholders’, and ‘Co-owning media is on the horizon, and press coverage of the Leveson enquiry shows why we need this.’

In a speech last July,  the P. M.’ s deputy took a stand against the unhealthy concentration of power in the media:

[D]iversity of ownership is an indelible liberal principle because a corporate media monopoly threatens a free press almost as much as a state monopoly does.

Jaron Lanier

Jaron Lanier comes to the right conclusion about paying for content — or rather, paying whom

A super-geek he may be, down to his last dreadlock, but Jaron Lanier inspects the classic positions and tenets of the geekocracy with a coolly objective eye. He advocates compensating the ‘ordinary people’ Nick Clegg mentioned, not — so far — as stakeholders, but as suppliers of ‘content’ that media moguls and their giant corporations, like Facebook, are exploiting shamelessly. He asked in the New York Times last week:

What if ordinary users routinely earned micropayments for their contributions? If all content were valued instead of only mogul content, perhaps an information economy would elevate success for all. But under the current terms of debate that idea can barely be whispered.

Obviously, the editors at the Ladies’ Home Journal – paying their readers the same fees for content as professionals – are shouting, not  whispering, their understanding of the way media reform will now proceed.

Oxford Street branch of the John Lewis Partnership, 1936

An instructive poll for the Guardian

It was astonishing to see the results of a poll on the Guardian site related to the Clegg co-ownership proposal. Eighty-seven per cent of the poll-takers voted ‘yes’ in answer to a question referring to Britain’s most famous employee-owned company: ‘Would you like to live in a John Lewis style economy?’ That surely added up to endorsing a recommendation of  such a structure for ownership of the Guardian itself, or some part of it — even if proposals made in the online paper’s comments section for experimentally co-owning bits of it with readers  were censored more than once last year.  Ahem.

Nick Clegg and his personal think tank appeared to have anticipated precisely such — erm, discouragement, when he suggested in the same speech,

… giving employees a new, universal “Right to Request” shares. Imagine: an automatic opportunity for every employee to seek to enter into a share scheme, enjoying the tax benefits that come with it, taking what for many people might seem out of their reach, and turning it into a routine decision …

In other words, no one would be censored or punished simply for asking an employer for a stake in a company… Still, well done, Gruan, for conducting that poll.  Soon, you might almost be as brave as the Ladies’ Home Journal.

Google, bowing to social media, is letting down tomorrow’s Samuel Becketts

In Blogging and bloggers, Leveson Inquiry, Re-arranging publishing for the 5th Estate on 16/01/2012 at 9:07 am

Before Google redesigned its search system, good but obscure blog posts often made happy landings. -- Bottle, message and photograph by Jay Little, scuttlefish.com

 [ part II:  part I is here ]

At a celebration in 2010 of the life of the late Norman Macrae, a notoriously wild visionary and deputy editor of The Economist, I learnt that he once tried to promote a nasal spray as a ‘cure’ for homosexuality. I was reminded of his quixotic mission when a flurry of offers to turn introverts into extroverts for the age of networking came up in search results for the title of last week’s post in this spot — about shy people and social media. These services would have seemed pointless before a Google announcement on the 10th. No longer. It is clear that the all-powerful search engine cannot now serve as the greatest boon and crutch, ever, for the socially averse.

Let me illustrate what Google was able to do for introverted writers – before it made its big mistake – by looking at problems in the career of Samuel Beckett. As I mentioned last week, I have been reading his letters , so addictive that they outrank all my other choices for entertainment, even with a wireless broadband link to the net. Having his words and defiant wit for company has helped to blunt the edge of my dismay about the reshaping of the online experience.

Gatekeepers at the pinnacle of publishing would have punched the ‘dislike’ button on Samuel Beckett’s submissions of his early work incessantly — had some version of today’s read-and-react tools existed in the late 1920s and ‘30s. Most improbable about those rejection slip years is that he was supremely well-connected at the time, serving for a while as the research assistant of his good friend, James Joyce. Among his rejectors were Leonard and Virginia Wolf, publishing under their imprint, the Hogarth Press. On 18 August 1932,  Beckett complained,

This month of creeping and crawling and solicitation has yielded nothing but glib Cockney regrets. The book came back from the Hogarth Press, and the poems, with merely the formal rejection slip. Nothing from L. W. He was out of London… I have good reason to believe that the MS never left London and that in all probability he never saw it. But he must have got my letter. Or perhaps it is his turn for the asylum. Anyhow tant piss. I then brought it to Grayson and Cape. It came back yesterday from Cape. Their readers’ report did not encourage them to make me an offer for publication rights. … So far no reply from Grayson. I saw Rupert Grayson when I went round, the ‘author son of Sir Henry’. And a  proper pudding he appeared.

You can sense him fending off despair with exalted rage and nastiness to entertain his friend Thomas McGreevy. I have quoted a mere fraction of the rejections he endured in that particular month. Because his years out in the cold did not go on forever, his anger reads like high comedy. That would be impossible for the epistolary record of, say, Vincent van Gogh’s failure, which had no end in his lifetime.

‘[W]hat is striking about Beckett before the years of “fame,” is how wary he was of the public dimension of the arts, even as he was attempting to gain this dimension for himself and his work,’ notes the introduction to Volume I of the Cambridge University Press edition of his correspondence. In his dealings with publishers, ‘his wariness turns into a disdain or hostility which is all the more notable in that his principal interlocutors at publishing houses tend to be intelligent, patient, learned, supportive, and gentlemanly.’

Yes, yes, …  and as the editors of these letters point out, those gatekeepers were ‘almost unimaginable in the cut and thrust of today’s trade publishing world.’ But they were useless as advisors. On 18 October 1932, Beckett reported, as usual, in prose abounding in impish linguistic play:

The Grayson Bros. were stimulated by my multicuspid stinker to return my MS, ‘circumscribed appeal … Gratuitous “strength”’ What is that? I replied soliciting favour of readers’ reports. Reply to the effect that there was no written record of condemnation, that … my book had been read by 3 most distinguished readers and discussed verbally with the Fratellaci [a play in Italian on the name of the publisher, Grayson]; that their advice to me frankly and without the least desire to wound was to lay aside A Dream of Fair to Middling Women altogether, forget it ever happened, be a good boy in future and compose what I was well-fitted to compose – a best-seller.

Just think of all the wasted time and emotional energy in his struggle. The predictability with which tickets for Beckett’s plays sell out around the globe today – even when the actors are not especially well-known – has proved that the young Samuel did contain the seeds of a Nobel prize winner whose work would indeed find the huge audiences equivalent to those of a bestselling book. But for that, no thanks are owed to the gentlemanly early judges.

They were rejecting writing in which the voice – or voices, themes, perspective and preoccupations – were original; far ahead of their time. It did not conform to the prevailing standards of literary merit. The range of taste on which those standards were founded was constrained by the smallness of the circle of  tastemakers — publishers, editors and other assessors of manuscripts who were mostly men of strikingly similar social backgrounds and education. So when they concurred in judging his work as having ‘circumscribed appeal,’ they were a bit like spaniels chasing their own tails.

And there you have a metaphor for the way print publishing has worked – with rare exceptions – for hundreds of years, until the coming of … search engines!  Suddenly, we could all revel in being able to read opinions and reviews of, and reactions to, texts and works of art from continents away, and from readers as different as possible from people we know well – thanks to the unprecedentedly objective and dispassionate sifting of texts by the information-seeking software we call search technology.

This detachment from the sources of information has been a surpassing agent of democracy – for all art and all knowledge.  ‘The internet enables far wider participation in front-line science,’ observes the astrophysicist Martin Rees, until recently, president of Britain’s most illustrious scientists’ club, the Royal Society, in a new book  about the net’s effects. ‘It levels the playing field between researchers in major centres and those in relative isolation, hitherto handicapped by inefficient communication.’

We got used to postings on blogs like this one — virtually undiscoverable before Google’s refinements of search technology — becoming like messages in bottles finding their way to surprising numbers of welcoming and sympathetic shores. For many of us, unbiased search engines have been so vital to our ability to do our work and reach others with similar interests and obsessions that the internet might almost be Google, as far as we are concerned.

I never met a more ardent fan of the old Google than myself.

But that has gone the way of most passionate love affairs. Last week, the New York Times described how Google has begun to link search results to social networking on services like Facebook and Twitter:

For instance, for most users, a search for “chikoo” would show links about and photos of an Indian fruit. But for friends of Mr. Singhal, it would also show photos and posts about his dog, Chikoo. A search for a sports team would show, in addition to the usual links, conversations about the team among a user’s friends on Google Plus.

When people search for a name, Google will highlight people who are friends with the searcher on Google Plus, or prominent people. And in searches for general topics, like “cooking,” Google will show Google Plus profiles of celebrity chefs on the right side of search results.

One dire effect of Google’s reliance on social media for search results will be to replicate and magnify the old gatekeepers’ spaniel silliness – which works much like the ‘confirmation bias,’ or people’s tendency to prefer and emphasise facts that support their beliefs and prejudices, spurning alternatives that might be closer to the truth.

Before Google tweaked its search system to elevate the conventional and familiar – and socially conformist – above the new, challenging and foreign, a web site’s obscurity or relative isolation would not necessarily bar it from appearing near the top of search results. That was because Google’s search system was designed to favour intellectual substance, and dependable statements of fact – based on the quality of a site’s links to other repositories of knowledge, opinions, and records of fact or effort.  Of course search technology could hardly rank or anticipate literary merit, but anything a contemporary Sam Beckett posted on the web would have had a decent chance of appearing with, at least,  some noteworthy answers to the huge range of possible search enquiries. There was hope for their reaching a far wider variety of judges than members of the old spaniel club.

Now, we must conclude from what we are told about the change in Google’s search techniques that an obscure Beckett of the wilderness years would have to dedicate a large and ever-growing portion of each day to chasing celebrity-status, and to building purely social connections – with the numbers of these mattering more than their quality – to be noticed and read at all.

As noted on this blog last week, relentless self-promotion and hobnobbing are unreasonable requirements of people temperamentally disinclined to socialising – the ones we call introverts. If they do not act against their instincts, the coordinates for their work – no matter how useful or admirable it might be – are condemned to fall steadily from public view. Just as in the bad old days, to them that already hath a lot – fame, attention, praise – more shall be given.

I am not sure what is more distressing about Google’s move – its coerciveness (Get busy on social media, or else!) or the narrowing of everyone’s frame of reference that it implies.

How can it be anything other than a colossal misuse of the world wide web, the supreme tool for broadening intellectual horizons – to make everyone more parochial, narrow, tribal, and inclined to pander to the lowest common denominator?

That strikes me as something like using a jumbo jet to pop in at the grocer’s and buy a bag of apples exactly like the ones you already have growing on the tree in your own back yard , then boiling them to pulp — but with a celebrity endorsement.

How would introverts like Beckett — and Wittgenstein, Kafka and P.G. Wodehouse — have survived social media?

In Blogging and bloggers, Social media and networking on 09/01/2012 at 12:12 pm

Samuel Beckett drawn by Edmund Valtman

[ part I;  part  II is here ]

We like talking so much because we hope by our conversations to gain some mutual comfort, and because we seek to refresh our wearied spirits by variety of thoughts. And we very willingly talk and think of those things which we like or desire, or else those which we most dislike … But alas! it is often to no purpose and in vain.

Thomas à Kempis (1379-1471), ‘Of the Danger of the Superfluity of Words’ 

The most riveting collection of words I have come upon this winter is in a 1935 letter from a twenty nine year-old Samuel Beckett, whose work would later be translated into at least twenty languages and stimulate conversations all over the world. He was writing to his closest friend, Thomas McGreevy, about his sceptical reading of the medieval German theologian, Thomas Haemmerein, known as Thomas à Kempis – who, in the passage I have quoted, plainly anticipated Facebook’s  ‘like’  button. Beckett confesses:

For years I was unhappy, consciously & deliberately ever since I left school & went into [Trinity College Dublin], so that I isolated myself more & more, undertook less & less & lent myself to a crescendo of disparagement of others & myself. But in all that there was nothing that struck me as morbid … It was not until that way of living, or rather negation of living, developed such terrifying physical symptoms that it could no longer be pursued, that I became aware of anything morbid in myself.

The year before, a plague of boils, cysts and heart palpitations that Beckett perceived as psychosomatic had led him into treatment with a psychoanalyst, W. R. Bion. After that, he says, he forced himself to be less reclusive. He is not especially convincing on this score, as he reports in the same letter that ‘I spend most of my time, when not with Bion or walking, reading on top of the fire.’ At the end of his life, it was plain that his true sentiments were closely aligned with those of  à Kempis, only bleaker. He wrote, not long before he died, that each word spoken seemed ‘an unnecessary stain on silence and nothingness.’

Yet he was an avid reader. I have found myself wondering whether the internet could ever be the true friend of introverts that books have been for centuries – not just making it possible to get lost in stimulating new information, ideas and vicarious feeling, but because opening one can serve as a polite ‘keep out’ sign when, as Beckett expressed the condition of being emotionally drained, ‘the bath is nearly empty’.

What are introverts supposed to do in the age of social media? Specifically, how are they supposed to respond to the pressure to join the unending exchange of news and views and intimate disclosures – or pretence thereof – in tweets and postings? An alarming index of the growing coerciveness of these media is a report that the more enthusiastically a blogger joins the great conga line in the ether, the higher the rank assigned to the blog in Google’s search results – supposedly because of a change in Google’s algorithm. Someone posted a link to this news I don’t remember exactly where, last week. When I looked up the reference it turned out to be six months old, an eternity for a company that appears to tweak its policies every quarter, but perhaps Steve Olenski of Social Media Marketing was not merely grinding an axe when he quoted someone in his business pronouncing,

‘If you don’t have a presence in social, you’ll lose your presence in search.’

It certainly fits the repetitious, mind-numbing reminders that have begun to recall the lovely old Private Eye series, ‘Great Bores of Today’, to the effect that

[t]he internet is [...] a code for the collective conscious or “distributed networked intelligence”. The internet is our collective externalised mind.

Or, as William Gibson, the science fiction writer and inventor of the word ‘cyberspace’ has been quoted,

… humans, as a species, are ‘in the process of growing itself an extended communal nervous system.’

But even if there is a great mind-meld into a single system in the offing, surely that giant organism will need long respites from chatter – whether that is something like sleep, if not interludes of Beckettian ‘silence and nothingness’? Parts of our individual brains do crucial work in the background,  and unobtrusively:  surely we can acknowledge and accept that there are vital contributors to society ill-suited to social media, who deserve protection from their coercive promotion?

Or,  should we simply let evolution favour extroverts, so that social media’s influence on natural selection will, as someone witty has said in another context, render introverts ‘genetically speaking … a cul de sac’ in the future?

Worry about that possibility does not seem to be getting much attention. Critics of the internet like Nicholas Carr tend to focus on its effect on concentration and mental acuity – as in, ‘Is Google Making Us Stupid?’. There are  introverts pointing out that social media are more congenial because they spare them the trauma of going out and meeting actual, embodied, human beings. I must respectfully disagree. That might have been true before social media took off in earnest. Following the Twitter streams of the champions in these channels shows them at it — I mean, extraverting madly — from early in the morning. They do not stop for weekends or public holidays – and they appear to have fostered the expectation that we should all be equally tireless witterers, which can hardly be attractive to lovers of solitude and introspection.

What might we lose by discouraging introversion?

The psychiatrist Anthony Storr, a lucid and honest thinker, confessed to reversing himself on the subject of introversion in Solitude (1988):

In an earlier book, I stressed the need for interpersonal relationships in the maturing of personality:

[C]reative artists may believe that it is in the ivory tower of the solitary expression of their art that their innermost being finds its completion. They forget that art is communication, and that, implicitly or explicity, the work which they produce in solitude is aimed at somebody.

I still believe this; but I want to add a rider to the effect that … [t]he great introverted creators are able to define identity and achieve self-realization by self-reference; that is, by interacting with their own past rather than by interacting with other people.

He made his point with deft sketches of a long list of writers and philosophers, including

… the biggest surprise, for me … P.G. Wodehouse, who ‘[dreaded] individual social contacts, hated being interviewed, loathed clubs (though he belonged to a number of them), and lavished on animals the affection which he could not give to his fellow-creatures.’

… the dazzling satirist Saki (H. H. Munro) and Franz Kafka: ‘Both were story-tellers, but their stories were hardly ever concerned with intimate human relationships, and neither man established any prolonged intimate relationship in reality.’

Immanuel Kant, who believed ‘that every rational being existed as an end in himself, and that is how we ought to treat each other … [H]e did not form any close relationship with either sex … Although generous to his relatives, he took care to keep well away from them.’

Ludwig Wittgenstein, ‘who must have been one of the most profoundly introverted men of genius who has ever existed. What was taking place in his own mind was, to him, far more important than anything taking place in the external world. … [He] was indifferent to social conventions, disliked the small talk of academic life, and hated social pretensions.’

Isaac Newton, who was ‘predominantly a recluse, preoccupied with his work to the exclusion of almost everything else, with little social contact with other human beings, and no close relations with either sex.Newton’s distrust of others is attested by his reluctance to publish his work.’

If any of these people swooped down in a time machine, would anyone sensible recommend labouring at a Facebook wall to them, or Twittering in the dawn tweetastic?

I see that I am getting silly, but that might be because prolonged head-scratching about the attractions of social networking has left me perfectly witless.

Will 2012 be the year of a great leap forward into media’s future — even at The New York Times?

In 4th Estate moves, Blogging and bloggers, Cooperatives, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The 5th Estate in action on 30/12/2011 at 11:59 am

Back to the future 1: barn-raising

Back to the future 2: the work of quilting bees -- Steven Heller

My new year will begin not with a resolution but a hope.

It has been a bit lonely, trying to persuade other people intimately acquainted with mainstream media to discuss specific proposals for media reform. But three short essays published in the last month – to which I am about to post links – show that I am in good company in suspecting that co-owning media with readers and viewers could be the most realistic route into the future. It is no longer quixotic to hope that the most rigid opponents of reform will give alternatives to the status quo a friendlier reception.

With any luck, I will soon be able to drop the subject of media restructuring from this blog because powerful media people persistently refusing to discuss it have, at last, picked up the torch.

My personal high-water mark for the media establishment’s resistance to the new dates from the spring of 2010, when I emailed a question to an editor near the top of The New York Times.

The press has been critical to the success of democracy as a form of government; how is it responding to its own democratisation, and how far would it be prepared to go on that road — voluntarily? If you could recommend the right person at the paper for these questions, I’d be immensely grateful.

Zzzzzzzzzing! … the editor’s reply came fast enough to set heads spinning:

I don’t know that anyone would have a specific opinion on this, at least not one that represented the Times in general. You might look to see if an editorial has ever been written about it. If not, I suspect your question doesn’t have an answer.  [my ital.]

No search engine brings up any such NYT editorial. What that response was surely supposed to impress on me was that ‘our’ never having addressed the question meant that it was inherently unanswerable.

Which is patently untrue – but that was then, and I cannot believe that anyone with a senior role in running the newspaper would respond so loftily today. The subject of co-owned institutions is not apparently off-limits for the editors there, as it is for large numbers of their fellow-citizens. Nor do they automatically dismiss it as ‘socialism’, very nearly a term of abuse in much of the U. S. — a fact that has always struck me as a bit odd about a country that is not only the home of capitalism and Ayn Rand’s woolgathering about the ‘virtues of selfishness,’ but of cherished memories of communal barn-raising and quilting bees.

On 14 December, the NYT  gave Gar Alperovitz, the author of America Beyond Capitalism, the chance to tell us, in ‘Worker-Owners of America, Unite!’:

[M]ore and more Americans are involved in co-ops, worker-owned companies and other alternatives to the traditional capitalist model. We may, in fact, be moving toward a hybrid system, something different from both traditional capitalism and socialism, without anyone even noticing.

Some 130 million Americans, for example, now participate in the ownership of co-op businesses and credit unions. More than 13 million Americans have become worker-owners of more than 11,000 employee-owned companies, six million more than belong to private-sector unions.

Out in the blogosphere, these posts were waiting to be discovered:

In a 9 December entry on the site of Harvard’s Nieman Journalism Lab, Tom Stites, the president and founder of the Banyan Project — which is building a model for web journalism as a reader-owned cooperative focusing on local news — asked: ‘Might the new web journalism model be neither for-profit nor nonprofit?’ He said, in part:

In this era of rampant deceptive business practices,[…] a significant source of co-ops’ strength is the trustworthiness inherent in their democratic and accountable structure.

This is also an era of rampant mistrust of journalism, so co-op news sites’ trustworthiness has the potential to add value to what they publish. Further, the co-op form allows, or rather demands, that news coverage decisions arise from the what a community’s people need rather than from today’s dominant approaches […] The web is inherently collaborative — just as co-ops are — and at the local level this creates the potential for civic synergy that could add still more value to co-op community journalism.

On 19 December, Jeff Jarvis, a new media expert, suggested that The New York Times should consider using a ‘reverse pay meter’.

As I ponder the future of The New York Times, it occurred to me that its pay meter could be exactly reversed. I’ll also tell you why this wouldn’t work in a minute. But in any case, this is a way to illustrate how how media are valuing our readers/users/customers opposite how we should, rewarding the freeriders and taxing—and perhaps turning away—the valuable users.

[...]

Imagine that you pay to get access to The Times. […] But whenever you add value to The Times, you earn a credit that delays the next bill.

»  You see ads, you get credit.

»  You click: more credit.

»  You come back often and read many pages: credit.

»  You promote The Times on Twitter, Facebook, Google+, or your blog: credit. The more folks share what you’ve shared, the more credit you get.

[ … and several other suggestions along these lines …]

He said in closing:

Readers bring value to sites if the sites are smart enough to have the mechanisms to recognize, exploit, and reward that value, which comes in many forms…

Regular visitors to post-Gutenberg.com will have noticed a striking overlap between the essence of the Stites and Jarvis schemes and the proposal for a ‘keiretsu-cooperative’ as the ideal structure for media of the future. (New readers will want to see: The Keiretsu-Cooperative: A Model for Post-Gutenberg Publishing.)

May this most welcome parallelism lead to actual change — soon.

In the meanwhile,  Happy New Year!

for 25. 12. 2011

In Uncategorized on 19/12/2011 at 12:21 pm


A reply to Richard Stacy: the keiretsu-cooperative is at the opposite pole from a ‘walled garden’

In 4th Estate moves, Blogging and bloggers, Cooperatives, E-books, Re-arranging publishing for the 5th Estate, The 5th Estate in action on 12/12/2011 at 12:33 pm

A keiretsu-cooperative for Santas? Despite the mist, they were travelling too fast to ask

Since I posted this entry, Richard Stacy has written ‘A Futher Reply …’ well worth reading, and I have responded in his comments section, also explaining why post-gutenberg.com is unfortunately not open for commenting.

Richard,

I have enjoyed thinking about your answer. It has been impossible to discard this idea for a keiretsu-cooperative because practical people – including, as I am about to explain, a young technologist working for Barack Obama  – keep telling me that it could just work.

First and quickly, some clarifications: the keiretsu-cooperative would let large conventional publishers collaborate to share the costs of setting up — or extending — a publishing and discussion site designed to attract the indie writers we call bloggers. To enlist the help of these bloggers and make the site a success, the large publishers would allow each of them to acquire a small financial stake. The stake could take the form of a subscription to the site. No one would be excluded from reading or looking at the site’s contents, so it would not be what you called, in the first, fast, version of your reply, ‘a walled garden.’ I mention this because it is a misconception that keeps cropping up elsewhere, but what I have in mind is at the other pole. Stakeholders would have just two important advantages over those who chose not to subscribe: (i) chances to participate in the management of the site and vote on decisions affecting it; (ii) a share of any future profits. You might not agree, but I do not see any of this as inconsistent with your vision of media being transformed from a collection of rigid and exclusive institutions to a process – since the keiretsu-cooperative would be flexible, mutable and inclusive, with porous boundaries.

Publishers could test co-ownership inexpensively by running an experiment in a comments section of an existing site.

It was never my ambition to be a designer of futuristic structures for publishing. This proposal for ways of injecting ‘plurality’ into the ownership of publishing simply grew out of observing for five years how much commenters contributing posts to a ‘liberal’ newspaper resented being censored — not for obscene or rude remarks, but for challenging in civil tones the paper’s vested interests, both the political and commercial varieties.

I wondered, when did we ever give newspapers the right to tell us what thoughts were acceptable? I found myself reading widely about the start of the social revolutions we know as the Renaissance, for which the newly-invented Gutenberg press acted as a fulcrum. My most startling discovery was that censorship was practically invented with printing. Of course that seemed obvious after a few moments’ reflection, but what it underlined, for me, was the extent to which control of the levers of mass communication – or what we call the media – can undermine democracy, even in societies proud of their tradition of licensing free speech.

Then I considered another question: what arrangement for running media could best accommodate a democracy’s need to give people the facts they must have to vote wisely?

I was pleased to find your paper for proof that someone in the business world has also been reflecting on today’s crisis in publishing with history for a lens. From a realm far removed from mine, you reached the identical conclusion: that today’s leaders in traditional media are failing to understand that ‘[P]ower and influence in the world that is now forming […] will have a tendency to exclude any forms of institutional interference, control or ownership.’

Another new media consultant, like you, surprised me by instantly grasping the logic of the keiretsu-cooperative. Anil Dash, a 36 year-old technocrat entrusted by the White House with leading Expert Labs – a non-commercial organisation helping Barack Obama to democratise governing by exploring ways of using digital tools to let citizens assist the government with their expertise – sent this reaction to the scheme:

This is a topic that’s near and dear to my heart, since I’ve worked at a newspaper and helped making new publishing platforms online.

[…]

I have had far too many years in the trenches with the cynics and the naysayers and the slowly-failing publishers. But what I *love* about the idea is that it’s new, and provocative, and not the same old proposals we hear bandied about all the time.

A lot of the dialogue is dominated by the legacy issues of older publishers, and that makes it hard to propose relatively radical new ideas.

I think you accurately capture the motivations of all the parties involved, and I share your optimism that various parties would want to pay for participation.

He did have one reservation:

[W]here I struggle a bit … is in seeing an iterative path that gets us to this eventual keiretsu. I am not sure if we can make incremental steps, or if we have to start with this radical new point all at once, but I do think the former is a lot easier to get funded than the latter.

I do hope you’ll pursue this, though.

In last week’s entry in this blog, I mentioned that I was waiting to hear from another correspondent, ‘A’. I wanted to know whether it was ever part of his collaborative publishing plan to offer readers (not just editorial staff, early investors and managers) the opportunity to become stakeholders in the thriving specialist magazine, The Journal of Light Construction (JLC), that he developed with a few partners – and which has at the heart of its online site a lively forum for exchanging technical information. His reply said, in part:

The “readers” (more on that in a moment) of JLC were going to be the primary people offered ownership of the company (remember my mention of a DPO [direct public offering]?). After all, the company was really little more than a pot into which all of them had tossed their experience, know-how and money. How could it not be theirs to own?

Regarding the “readers” thing…this seems to be the biggest intellectual hurdle the old-media, Gutenberg folks have to overcome. Print, TV and most radio are a one-way, I’ll-give-you-what-I-want-to-give-you-when-I-want-to-give-it-to-you street, when the “customer’s” (more on that in a moment) need is to-have-what-I-want-when-I-want-it. From a business perspective you will note the potentially irresolvable dichotomy between media’s mission statement and that form of practice.

[…]

Regarding the “customers” thing, see the paragraph above…and note that the internet is a two-way street. The one-way signs no longer apply. Just as its advent revealed print in that realm is dead, so is “the customer.” There’s a community on that block, and they’re all in it together. So remember, look both ways before crossing.

No sooner had I digested that than an announcement from Amazon.com popped up in my email inbox. It was about Kindle Select, a new addition to its Kindle Direct Publishing enterprise for independent writers of e-books:

We’re excited to introduce KDP Select – a new option dedicated to KDP authors and publishers worldwide, featuring a fund of $500,000 in December 2011 and at least $6 million in total for 2012!  KDP Select gives you a new way to earn royalties, reach a broader audience, and use a new set of promotional tools.

Here’s how KDP Select works:

When you make any of your titles exclusive to the Kindle Store for at least 90 days, those with US rights will automatically be included in the Kindle Owners’ Lending Library and can earn a share of a monthly fund.  The monthly fund for December 2011 is $500,000 and will total at least $6 million in 2012.

[…]

How your share of the monthly fund is calculated:

Your share of the monthly fund is based on your enrolled titles’ share of the total number of borrows across all participating KDP titles in the Kindle Owners’ Lending Library.

This is a very different proposition from the keiretsu-cooperative, but the schemes do overlap in giving writers a financial incentive – by way of micropayments – to participate in a type of collaborative publishing experiment. I am still making up my mind about the attractiveness of Select. Though I am on record as a fan of Kindle Direct Publishing, I do not like Amazon’s requirement that writers who join this new scheme give it exclusive rights, even for 90 days. I would be more attracted by a plan that gave writers some say in the running of Kindle Select. Amazon also tends to be stingy with information about how it manages its e-book publishing – refusing, for instance, to explain its system for ranking e-books in various categories.

I think you would agree, Richard, that plurality, transparency and accountability are the forces we want to see shaping publishing in the future.

But at least this news from the book retailing giant is proof of its continuing willingness to stick its neck out for a bold experiment. Google also experiments endlessly – promptly euthanising ideas that prove to be duds.

New media specialists like these do understand that adventurousness is the key to success. Old media institutions, as you point out, only feel safe making small, incremental changes. You and ‘A’ could easily be singing in two-part harmony on this point:

Alan Rusbridger at The Guardian has talked about involving “Our Readers” in producing “Our Product”.  The problem is that news is no longer Alan’s product – it belongs to the people (he likes to call) readers and it doesn’t really live in fixed places (websites, newspapers) anymore, it lives in digital spaces (Google search terms).

As the oldies are more inclined to trust leaders in tangible, bricks-and-mortar businesses, they could do worse than consider the innovative appliance king, James Dyson. He was told by every vacuum cleaner manufacturer under the sun that his ‘business model’ for selling a dirt sucker without a dirt-collecting bag was unworkable – even if such a product could ever be designed and made to work. He and his engineers discarded thousands of prototypes on their way to success …  of which I am now a sub-microscopic beneficiary. Last year, the 25 year-old Electrolux in my house was replaced by a yellow-and-purple Dyson with a look of R2D2 about it. It works like – yes, the dream with which James Dyson began.

I think it’s too soon to conclude, as you suggest, that ‘media may be becoming something that can’t actually be owned in a way which allows any form of monetary benefit’. If you mean, owned by a privileged few, or moguls like Rupert Murdoch and Conrad Black, I agree, but not if you mean, shared by a large, loosely affiliated group of citizens. How could you, or any of us, know? There simply have not been any experiments exactly like, or closely resembling, the keiretsu-cooperative – so far.

Here is a song I suggest that old media types might try singing together at their meetings about surviving the future (with apologies to Cole Porter):

Experiment.
Make it your motto day and night …

Experiment and you’ll see. 

P.S. I almost forgot to say — by my definition, you are a blogger, just as you are a writer, in a part of your life – since I think of a blogger as being anyone who publishes unmediated texts on the internet, including comments on newspaper and other sites. ‘A rose by any other name,’ etc..

Co-owning media is on the horizon — and press coverage of the Leveson Inquiry shows why we need this

In 4th Estate moves, Blogging and bloggers, Cooperatives, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The 5th Estate in action on 06/12/2011 at 11:00 pm

Panda drummer: who can speak?

Blindly they saw themselves and deaf they heard –

But who can speak of this?

        –Farid ud-Din Attar, The Conference of the Birds, 12th c.  A.D.

                 Persian trans. by Dick Davis and Afkham Darbandi, 1984

A stranger, someone astute and entrepreneurial, emailed me about a comment posted in a discussion about the future of journalism on the site of Harvard’s Nieman Lab. ‘I think you’re on the right track with your focus on the business-model issue,’ he said.

He was referring to an outline of a means for old media organisations to move into post-print publishing in a Networking Age in which readers want to be more than passive audiences – to do more than influence stage management and be free to perform themselves. I set out a scheme for turning readers into financial stakeholders or co-owners – experimentally, at first, on parts of newspaper sites – suggesting that this might be an ownership structure for the future.

The essence of the idea was that every subscription would also be a share or financial stake in prospective profits. It would be an inducement for each reader or viewer to help bring many more visitors to a site. It would both help the site owner to attract more advertising and – implicitly – reduce dependence on advertising, if the concept of subscription-stakes caught on and went viral.

‘I tried an experiment along the lines of the one you are proposing,’ my correspondent continued. ‘It was a tremendous success … as far as it went.’

I shall call this correspondent ‘A’, as he does not want more recognition for what he did than his fellow-experimenters. The link to wallets and handbags for their plan was so clear that it had venture capitalists salivating. The idea was to monetise a publication and online forum on building for professionals and amateurs – an offshoot of the Journal of Light Construction (JLC), a magazine now 24 years old that is also the marquee name for a popular trade show. You can tell that it is thoroughly up-to-the-minute from the table of contents, where the offerings can range from ‘Pouring Complicated Slab Foundations’ to ‘Promoting Yourself With YouTube’.

The Journal of Light Construction

The forum on the magazine’s website is divided by specialisations. Each section has its own moderator – and in an innovation I have seen nowhere else, the specialist’s name is posted prominently beside the category. When the combined on- and off-line components of JLC were on their way to becoming a publicly traded company roughly ten years ago, ‘A’ and his confederates introduced the possibility of making JLC’s contributors and employees co-owners. I do not yet know whether readers would also have been invited to become stakeholders. If ‘A’ sheds any light on that question after he reads this, I will include what he says here with any other details of the adventure and corrections of this account.

For the moment, it is enough to say that the idea of co-ownership so appalled the lead investment banker working on the public offering that the whole plan was scuppered. The points ‘A’ most wanted to impress on me were these:

Ownership can be transferred at any time. The trick is to have something worth transferring first. … There could be NGO funding possibilities from which a larger community trust with cooperative member ownership could emerge…

And that, strangely enough, is very close to the proposal for a ‘keiretsu-cooperative’.  A publishing enterprise with a thriving community of reader-commenters could easily progress to sharing ownership of the commenting sites where readers already supply most of what there is to read or watch.

It would ask that many newspapers make just one more leap forward after this change announced by the New York Times last week, but already in place for some time on other digital news sites:

We have started using an improved comment section. It will put readers’ responses on the same page as the article, provide threading of comments so readers can respond directly to one another, and allow them to share their comments and those of others, to Twitter and Facebook.

To understand why readers want more than that, I recommend an excellent paper, ‘Gutenberg and the social media revolution,’ by a new media consultant, Richard Stacy**, which puts all these developments in their historical context, then offers a clear-sighted vision of the way ahead. Serendipity led me to it last week, when it came up with some Google links to my own site. His conclusion:

It is unlikely that power and influence in the world that is now forming will lie in the control of channel.  Instead it will be vested in forms of community, which will have a tendency to exclude any forms of institutional interference, control or ownership.

He also said,

It is not that people are going to reject institutionalised trust, but the task of sustaining institutionalised trust is going to become much harder in the world of transparency brought about by social media.

I would welcome anything that reversed my own fast-diminishing trust in mainstream, 21st-century journalism’s ability to live up to the ideals of the Fourth Estate – of which the highest are impartiality and rigorous self-scrutiny. To my dismay, most of  the British media – not just the tabloids – have failed to report every important criticism of the media made in the hearings for the Leveson Inquiry, except for the sensational details of the phone hacking scandal.

Giving evidence last week, Alastair Campbell, Tony Blair’s political adviser and communications director – that is, chief ‘spin doctor’ – did draw attention to some problems of the very greatest importance:

The. principle of the freedom of the press is always worth fighting for. The quality of that freedom however is questionable when the quality of so much journalism is so low, and when so few people – just a handful of men until now seemingly unaccountable to anyone but themselves and to anything but their own commercial and political interests – have so much say over the tone and nature of public discourse, and so much responsibility for the decline in standards. It is also worth fighting therefore – politicians, journalists and public alike – to change the press we have.

What he said before that at considerable length – about the collapse in standards – was not addressed in any press report of the Inquiry I have seen.  A former editor of the Daily Telegraph, Max Hastings, said in his 2002 memoir about his career that it is the job of a political press officer ‘to act as a purveyor of half-truths to the nation’s journalists, but it is the business of the journalists to seek out the missing 50%.’

At least half of what Alastair Campbell said is true and his critique deserves intense scrutiny and wide discussion by the press – in public. It dovetailed perfectly with the testimony in the same week by Nick Davies, the freelance writer for The Guardian who broke the phone hacking story and pursued it with ferocious determination. He said unequivocally that the press can no longer be trusted to regulate itself.

Is a thorough airing of such opinions possible with today’s media ownership structure? Is it possible when the authority to disseminate the information people need in a democracy — to make decisions for the common good — is concentrated in so few hands?

Surely we need a new ‘business model’ – of which the keirestu-cooperative could be a very rough first draft – not just to accommodate readers in their wish to share the stage, but to protect our form of government?

______________________________________________________

** who has already posted a magnificent response to this piece on his own site. I shall be replying in next week’s blog entry – underlining some of his points and clarifying aspects of the keiretsu-cooperative that have been imperfectly transmitted (mea culpa). I will put that up sooner than next Tuesday if I can interrupt what I am writing off-line.

 

Will Flattr, a micropayment specialist, prove to be PayPal’s equivalent for blog financing?

In Blogging and bloggers, Micropayments, Re-arranging publishing for the 5th Estate, Switzerland's extreme democracy, The 5th Estate in action on 28/11/2011 at 11:43 pm

Rooftops, or all we can see of the future of blogging

Welcome, Flattr.

Yours is the most practical solution I have seen so far to the question of how bloggers can make a living from blogging – without selling out to corporate advertisers.

I only learnt of your existence last week from a tweet about your ‘Pay a Blogger Day’. I am doing my best to help make tomorrow, 29 November, the start of something wonderful.

I shall be picking three bloggers to support, and will try to put a Flattr button here, soon – when I extend this post I am tapping out with too little time in a month of travelling and disruption.

Workable micropayments are crucial to the success of an egalitarian model for net publishing outlined in a blog entry here and described in detail in this paper.

Until I can post again, I will think about your descriptions of the Flattr enterprise, and the meaning of tomorrow:

Pay a Blogger Day is our effort to put the bloggers in the spotlight to recognize the value they bring to the internet.

………………………….                 and                     …………………………..

Flattr was founded to help people share money, not just content. Before Flattr, the only reasonable way to donate has been to use Paypal or other systems to send money to people. The threshold for this is quite high. People would just ignore the option to send donations if it wasn’t for a really important cause. Sending just a small sum has always been a pain in the ass. Who would ever even login to a payment system just to donate €0.01? And €10 was just too high for just one blog entry we liked…

Flattr solves this issue. When you’re registered to flattr, you pay a small monthly fee. You set the amount yourself. At the end of the month, that fee is divided between all the things you flattered.

2 December 2011 

I did indeed open an account with Flattr – which happens to be in Sweden – but its software has so far rejected my attempts to pay anonymous micro-tributes to two of the bloggers I chose. Nor does the Flattr button I added to this blog work yet. As I have had fires to tend elsewhere, there has been no time for a sustained attack on the problem.

So … that is another reminder of PayPal – not as the well-oiled and useful service it has become today, but in its early years, when it was still keeping its parents awake with teething traumas.

The idea behind Pay A Blogger Day remains excellent. This modest scheme, like Flattr itself, could be one stepping stone to collaborative publishing that is jointly owned and run by many. We do not know whether Flattr will live up to its promise but if it fails, some other organisation will find a way to act as a medium for computing and distributing microscopic sums of cash.

Computers, as most of us still perceive dimly, will turn out to be crucial to real democracy not just because they have brought us the net, with its capacity to gather and mobilise groups of people, but because they do complex arithmetic so effortlessly. In not-mathematics designed to give a mathematician a blue fit, you could say — to make this memorable,

 many equals = share precisely = an awful lot of counting

Governing Switzerland — the world leader in extreme democracy, as I have pointed out before, on this site  entails extraordinary feats of number-crunching. In explaining how the Swiss system works, the historian and political scientist Jonathan Steinberg has noted:

The Swiss prefer proportional representation to majority systems. ..[T] he ‘Sovereign,’ ‘the people’, is really sovereign …

The most striking single manifestation of that sovereignty is the intricacy of voting.

He supplies illustrations of the extreme delicacy of Swiss ‘instruments for measuring the popular will’. Do not worry about the specifics of his context – which has to do with the ways in which proportional representation divides seats on a certain governing council between different political parties (in some cantons). Consider only the complexity and sophistication of the calculations involved – for one example of which he quotes a fellow-scholar, Christopher Hughes:

Divide the total vote (60,000) by the number of seats plus one (11). The result is called the Provisional Quotient (5,454). In our example, it gives the provisional result of 6:2:1:0:0. But this only adds up to 9, and there are ten seats to be allocated. The second sum seeks the Final Quotient. This is obtained by dividing each party’s votes by the provisional number of seats it obtains, plus one. Thus List A (36,000) is divided by 7 (6 plus 1) and gives the result 5,142. This sum is repeated for each seat in turn, and the highest of the results is the Final Quotient; in our example, 5,142 is the highest. It is the number which when divided among each result in turn gives the right number of seats.

Got that? Right. Thought you would.

True democracy = massive computation.

We need you, Flattr, but please get the bugs out of your software – unless it turns out that mine is to blame for my inability to make another blogger’s day.