NSP REPORT 1: THE NEXT SYSTEM PROJECT NSP REPORT 1 THE NEXT SYSTEM PROJECT: NEW POLITICAL-ECONOMIC POSSIBILITIES FOR THE 21ST CENTURY Gar Alperovitz James Gustave Speth THENEXTSYSTEM.ORG Joe Guinan The Next System Project New Political-Economic The Next System Project is an ambitious multi- year initiative aimed at thinking boldly about what Possibilities for the Twenty- is required to deal with the systemic challenges the First Century United States faces now and in coming decades. Re- sponding to real hunger for a new way forward, and March 2015 building on innovative thinking and practical experi- ence with new economic institutions and approaches Gar Alperovitz being developed in communities across the country and around the world, the goal is to put the central James Gustave Speth idea of system change, and that there can be a “next & Joe Guinan system,” on the map. Working with a broad group of researchers, theorists, and activists, we seek to launch a national debate on the nature of “the next system” using the best research, understanding, and strategic thinking, on the one hand, and on-the-ground orga- nizing and development experience, on the other, to refine and publicize comprehensive alternative po- litical-economic system models that are different in fundamental ways from the failed systems of the past and capable of delivering superior social, economic, and ecological outcomes. By defining issues systemi- cally, we believe we can begin to move the political conversation beyond current limits with the aim of catalyzing a substantive debate about the need for a radically different system and how we might go about its construction. Despite the scale of the dif- ficulties, a cautious and paradoxical optimism is war- ranted. There are real alternatives. Arising from the unforgiving logic of dead ends, the steadily building array of promising new proposals and alternative in- stitutions and experiments, together with an explo- sion of ideas and new activism, offer a powerful basis for hope. The following report reflects the views of the authors alone. Any opinions expressed should not be attributed to others associated with the project, which seeks to incorporate a diversity of viewpoints. Towards the Next System onfronted with mounting social, economic, and policies that do not alter any significant decaying Cecological crises, growing numbers of Americans trends, and towards awareness that what must be have begun to realize that traditional strategies and changed is the nature of the political economic sys- reformist approaches no longer work. Simply put, tem itself. We believe that it is now imperative to many understand that addressing the problems of the stimulate a broad national debate about how best to twenty-first century requires going beyond business conceive possible alternative models of a very differ- as usual. It requires “changing the system.” But what ent system capable of delivering genuine democracy does this mean? And what would it entail? and economic equality, individual liberty, ecological sustainability, a peaceful global foreign policy, and The social pain arising from the economic crisis and a thoroughgoing culture of cooperative community the steady unfolding of the climate calamity have based on non-violence and respect for differences of made it possible—for the first time in modern his- race, gender, and sexual preference. tory—to pose these questions in a serious fashion in the United States. Yet, despite new space for a Thomas Jefferson believed that constitutions should thoughtful debate about fundamental change, politi- be designed anew by successive generations in order cal challenges to the system have thus far been con- to keep pace with the needs and concerns of the citi- tained by the continuing lack of viable alternatives. zens of the day. Our own time in history is such a For decades, the only choices to many have seemed “constitutional moment.” Unless a plausible alterna- to be state socialism, on the one hand, or corporate tive system can be developed, fleshed out via research capitalism, on the other. But if corporate capital- and debate, and ultimately embraced and implement- ism—to say nothing of the traditional state socialist ed by theorists, practitioners, policymakers, activists, model—appears unable to sustain equality, liberty, and citizens at all levels, the current downward trajec- and democracy, or to avert planetary disaster, is there tory of pain and decay will likely continue. any alternative? Fortunately, a steadily building array of alternative The following paper sets out the rationale for a con- institutions and experiments in communities across certed effort to break through the national media the country and around the world, together with an silence and to radically shift the national dialogue explosion of new ideas and activism, have begun to about the future away from narrow debates about suggest real possibilities for fundamental change. 4 THE NEXT SYSTEM PROJECT It is time to think boldly about what is required to Real wages for eighty percent of American work- deal with the systemic difficulties facing the United ers have been virtually flat for at least three de- States. It is time to explore genuine alternatives and cades. Meanwhile, income for the top one percent new models—“the next system.” It is time to debate has jumped from ten percent of all income to more what it will take to move to a very different place, one than twenty percent. Over the course of forty years where outcomes that are truly sustainable, equitable, the proportion of the population in federal and state and democratic are commonplace. prisons has more than quintupled—from 93 to al- most 500 per hundred thousand. We now criminalize more conduct than most other countries in the world. Across a range of socio-economic indicators, the data The System Question make for grim reading. A growing number of Americans have begun to ask The United States faces a systemic crisis, not simply ever more penetrating questions about the direction political and economic difficulties. The economy is our country is headed. Washington is broken—seri- stagnating. The political system is stalemated. Com- ous decisions capable of dealing with our problems munities are in decay. The lives of millions are com- cannot be made. Gestures and posturing fill the air- promised by economic and social pain. Violence is en- waves. Politics no longer even attempts to confront demic among individuals, communities, and nations. the issues that matter most. Civil liberties are eroding. Near-record numbers of citizens remain incarcerated. Underemployment, in- When long, long trends get steadily worse, year in equality, and ecological despoliation deepen day by and year out, it is clear that something profound is at day. The planet itself is threatened by climate change. work. When big problems emerge across the entire A generation of young people expects to be worse off spectrum of national life, it is not for small reasons. than their parents. The very idea of building a coop- A political economy is a system, and today’s system erative community of caring responsibility has faded is programmed not to meet basic needs but to priori- from common understanding. tize the generation of corporate profits, the growth of GDP, and the projection of national power. It follows Traditional strategies to achieve equitable and sus- that if we are serious about addressing the challenges tainable social, economic, and ecological outcomes we face, we need to think through and then build a simply no longer work. Income and wealth dispari- new system of political economy, however difficult the ties have become severe. The government no longer task, and however long it may take. Systemic prob- has much capacity to use progressive taxation to lems require systemic solutions. achieve equity goals or to regulate corporations ef- fectively. Corporate power dominates decision-mak- The time has come to think boldly about what is re- ing through lobbying, uncontrolled political con- quired to deal with the systemic difficulties facing tributions, and political advertising. Publicly listed, the United States. It is time to begin a real conver- large-scale corporations are subject to Wall Street’s sation—locally, nationally, and at all levels—about first commandment—grow or die!—and increasing genuine alternatives. It is time to develop thoughtful, carbon emissions come with the territory of ever- system-building answers to system-threatening chal- expanding growth, both as an economic matter and lenges. It is time to debate what it will really take to as a political matter, where opposition to anything move in a new direction capable of producing sustain- that adds costs is part and parcel of the basic corpo- able, lasting, and more democratic social, economic, rate dynamic. and ecological outcomes. 5 THE NEXT SYSTEM PROJECT Rarely do important ideas matter in politics. What usu- The mainstream press, of course, covers very little of ally matters is the momentum of entrenched power. But this. Most of the projects, ideas, and research efforts not always. Sometimes—when the old ideas no longer have gained traction slowly and with little national explain the world, when it is obvious that something is attention. But in the wake of the financial crisis, they wrong—new ideas can matter, and matter a great deal. have proliferated and earned a surprising amount of Today, there is a need for—and hunger for—new under- support—and not only among advocates on the left. standing, new clarity, and a new way forward. The various institutional efforts have begun to devel- op new strategies that point to broader possibilities We believe that the time is ripe for a major strate- for change. gic intervention in public life aimed at putting “the system question” on the map and catalyzing a wide- New terms have also begun to gain currency in diverse ranging public debate about real systemic alternatives.