Editor’s introduction: In the early 1990s, immediately after the collapse of communism in the Soviet Union, I was part of a delegation from the PROUT Institute that worked in a joint venture with the Russian Far East Public Academy of Sciences to plan a transition to a Prout economy in the Russian state of Khabarovsk Krai.
The problem with this model is the absence of a founder with a vision and entrepreneurial drive. The failed business you describe will only fail again without Leadership & a viable strategy to win in the free market.
Check out NOW WHAT?, my Substack, for its dealing with what we the people can do in the absence of a government working for us — things like what this talks about and more. I don’t find all that many of us on Substack or anywhere and I’d love to have a coalition of us thinking together.
Very interesting- so perhaps it may only take one bank, for example, to decide to join the cause of worker empowerment and give loans to groups of workers to purchase their own companies as they go bankrupt. That actually seems pretty concrete and achievable! But for it to be successful we need to stop large companies from rigging the game in their favor and address the systematic inequalities in the economic system so these worker-owned companies can even get a fair shot.
One of the best kinds of banks to be in this role are state banks. The state bank in North Dakota has provided a model of the benefits of state banks.
One of the reasons for the success of the Modragon cooperative federation in the Basque region of Spain is that since its inception there's been a bank as a part of the federation and that capitalizes new cooperative enterprises.
So, yes, I agree, a solidly supportive bank could be a huge asset. Better yet would be several banks -- credit unions, cooperative federation banks, state banks, all channeling capital into the conversion to a cooperative economy.
This article resonates deeply with me as it highlights the possibility of turning adversity into opportunity through collective effort. The idea of workers reclaiming ownership of bankrupt businesses feels both empowering and practical. It’s inspiring to think that those who are most invested in a business’s success—its workers—could rebuild it into something equitable and sustainable, where their contributions are valued beyond a paycheck.
The editor’s introduction adds an important layer to this discussion, reminding us that while the cooperative model holds great promise, success hinges on developing practical strategies to overcome opposition from entrenched powers. The example of Russia, where the transition failed due to a lack of actionable plans to counter oligarchs and global corporations, serves as a cautionary tale. It reinforces the need for thoughtful, well-prepared pathways to ensure workers are not left vulnerable to external forces seeking to maintain control.
I find the emphasis on cooperation and shared responsibility particularly meaningful. It aligns with my belief that people are capable of incredible resilience and creativity when united by a common purpose. However, I also feel the weight of the challenges ahead, especially the resistance from deeply entrenched capitalist systems. The article’s call for bold, forceful action is both energizing and daunting, reminding me that meaningful change requires courage and persistence.
What strikes me most is the idea that cooperatives could inspire a shift in how we view work and ownership, creating not just jobs but communities of shared purpose. Coupled with the editor’s insights, I see even more clearly how essential it is to not only seize moments of opportunity but also to anticipate and address potential roadblocks with strategic foresight. It’s a hopeful vision of a future where businesses are not just about profit but about people and the planet. For me, this is a reminder that, even in difficult times, we have the power to shape a better, more inclusive world through collective effort—if we plan for success and learn from history.
I really appreciate all the great thought and wisdom put forward by this Substack. I also can't help but feel like an article with this title could not be complete without a section discussing a strategy for paving the way to economic democracy with legislation. I've never been completely comfortable with the assurance that the opportunity for transition is going to present itself in any meaningful way amidst the chaos of collapse. Russia falling to authoritarianism and oligarchy seems a prime example. To be successful, I believe this movement also needs to mount an effort to develop, propagate, and promote model legislation that supports a transition to cooperativism, and bolsters the commons. It is an often successful strategy used by corporations and special interest groups seeking to make changes. They develop new model laws, and then get like minded people and groups around the country to adapt them and put them forward in their areas. To me this seems like the most practical solution to help ensure the transition will occur as desired.
The problem with this model is the absence of a founder with a vision and entrepreneurial drive. The failed business you describe will only fail again without Leadership & a viable strategy to win in the free market.
I like the B Corp model better
Check out NOW WHAT?, my Substack, for its dealing with what we the people can do in the absence of a government working for us — things like what this talks about and more. I don’t find all that many of us on Substack or anywhere and I’d love to have a coalition of us thinking together.
Very interesting- so perhaps it may only take one bank, for example, to decide to join the cause of worker empowerment and give loans to groups of workers to purchase their own companies as they go bankrupt. That actually seems pretty concrete and achievable! But for it to be successful we need to stop large companies from rigging the game in their favor and address the systematic inequalities in the economic system so these worker-owned companies can even get a fair shot.
One of the best kinds of banks to be in this role are state banks. The state bank in North Dakota has provided a model of the benefits of state banks.
One of the reasons for the success of the Modragon cooperative federation in the Basque region of Spain is that since its inception there's been a bank as a part of the federation and that capitalizes new cooperative enterprises.
So, yes, I agree, a solidly supportive bank could be a huge asset. Better yet would be several banks -- credit unions, cooperative federation banks, state banks, all channeling capital into the conversion to a cooperative economy.
This article resonates deeply with me as it highlights the possibility of turning adversity into opportunity through collective effort. The idea of workers reclaiming ownership of bankrupt businesses feels both empowering and practical. It’s inspiring to think that those who are most invested in a business’s success—its workers—could rebuild it into something equitable and sustainable, where their contributions are valued beyond a paycheck.
The editor’s introduction adds an important layer to this discussion, reminding us that while the cooperative model holds great promise, success hinges on developing practical strategies to overcome opposition from entrenched powers. The example of Russia, where the transition failed due to a lack of actionable plans to counter oligarchs and global corporations, serves as a cautionary tale. It reinforces the need for thoughtful, well-prepared pathways to ensure workers are not left vulnerable to external forces seeking to maintain control.
I find the emphasis on cooperation and shared responsibility particularly meaningful. It aligns with my belief that people are capable of incredible resilience and creativity when united by a common purpose. However, I also feel the weight of the challenges ahead, especially the resistance from deeply entrenched capitalist systems. The article’s call for bold, forceful action is both energizing and daunting, reminding me that meaningful change requires courage and persistence.
What strikes me most is the idea that cooperatives could inspire a shift in how we view work and ownership, creating not just jobs but communities of shared purpose. Coupled with the editor’s insights, I see even more clearly how essential it is to not only seize moments of opportunity but also to anticipate and address potential roadblocks with strategic foresight. It’s a hopeful vision of a future where businesses are not just about profit but about people and the planet. For me, this is a reminder that, even in difficult times, we have the power to shape a better, more inclusive world through collective effort—if we plan for success and learn from history.
The problem with workers inheriting bankrupt businesses is that they now own a failed company - and lack the skillset to turn it around
I really appreciate all the great thought and wisdom put forward by this Substack. I also can't help but feel like an article with this title could not be complete without a section discussing a strategy for paving the way to economic democracy with legislation. I've never been completely comfortable with the assurance that the opportunity for transition is going to present itself in any meaningful way amidst the chaos of collapse. Russia falling to authoritarianism and oligarchy seems a prime example. To be successful, I believe this movement also needs to mount an effort to develop, propagate, and promote model legislation that supports a transition to cooperativism, and bolsters the commons. It is an often successful strategy used by corporations and special interest groups seeking to make changes. They develop new model laws, and then get like minded people and groups around the country to adapt them and put them forward in their areas. To me this seems like the most practical solution to help ensure the transition will occur as desired.
Wow. I almost understood this! I will read it again when my brain isn't sleep-deprived and pierced with an ice pick.
Excellent job, Marc.