InterView - 21 May 2011
Confusing Citizen/Consumers
Farid Tabarki
What is the similarity between local generators to create energy, The New World of Work, Crowd Funding and 3D Printing? They all four are part of a larger, overarching trend: radical decentralization. ”A trend with far-reaching consequences. Confusing, too”, says researcher Farid Tabarki (Studio Zeitgeist).
Besides the large coal, gas and nuclear power stations throughout the Netherlands, now we see smaller, renewable generating units based on wind, biomass, water and especially sun. Examples are the Windvogel, a wind farm that is owned by individuals, the cooperative Zonvogel (Sunbird, for solar energy) and Calorie Energy, a utility company in Castricum.
The process of generating decentralized power is not only more durable but (often) more efficient than the traditional methods, which are centrally organized and based on fossil energy: decentralized power generation can do without the traditional transport of energy and the associated unnecessary loss. If the people who generate their energy can return their surplus to the power grid, they might even earn some money. Also, a decentralized generation democratizes the energy system: people become less dependant of energy-producing powerhouses and competition between energy providers is encouraged. And finally, decentralized energy generation can strengthen the social cohesion, certainly in the case of a neighbourhood initiative.
Radical decentralization
Decentralized energy is a good example of what researcher Farid Tabarki (Studio Zeitgeist) calls “radical decentralization” . Radical, because rapid and dramatic. Decentralized, because it’s not ‘top-down’ but ‘bottom up’ and ‘horizontal’: the citizen/consumer is becoming more important, consumers and citizens are increasingly in charge of networks, often locally based.
“The neighbourhood is back, despite all the cutbacks in community work. Decentralized energy is just one example. A development such as the emergence of the The New World of Work may very well result tin an increased role of the neighbourhood in people’s lives. For instance, I can imagine that primary schools will offer facilities for parents who work a lot at home. They could do tasks for the school as well, in between their daily activities. That would save the school money. And the parents, who are unable to work the whole day without a break, get the opportunity to intensify their relationship with the children and other parents.
Cheering Karl Marx
Far-fetched? Not at all. There are not yet that many examples of radical decentralization, particularly not in the Netherlands: “Impossible, since the trend is still young – only one year or two.”
But it is clear that the trend may become a dominant, often disruptive force in society.”Take the advent of 3D printing. This is a development that Karl Marx would have applauded as a direct attack on capitalism, with its centralized ownership of the means of production. 3D printing is a radical break with that pillar of capitalism. You don’t need large factory or large stores to sell 3D-printed products. A printer and an internet shop are all you need. Basically, anyone can start his own factory and sell his own products .”
Banks under threat
The sector where the radical decentralization in the coming years will most assert itself is perhaps the banking system. ”Traditionally, banks have a monopoly on credit loans. But the rise of social media is a threat to that monopoly. Someone with an interesting project can potentially try to attract sponsors through Facebook. Sellaband operated on this principle : fans of bands could also act as sponsors. Kickstarter.com has a similar model.”
Many companies, governments, NGOs and consumers must still determine their position vis-a-vis the trend of radical decentralization. ”Take the banks. Will they still have a right to exist if they are no longer needed for credit loans? I think they should try to participate in the radical decentralization process. They could participate in the emergence of funding through social networks by facilitating the process of peer-to-peer lending. After all, they have a lot of financial expertise that they can use to advise clients. In other areas they will also have to adapt to their customers. The distinction between work life and personal life is increasingly blurry, for instance. It is a good idea as a bank to be accessible to your customers outside regular business hours. And if your clients use Twitter, maybe you as a bank should do so as well.”
Wrong tweet
Not all changes will take place without any effort. ”Perhaps the biggest challenge is the tension between control and freedom. As a company, your employees need more freedom, if you want them to serve the customer well. But on the other hand, you do not want to lose control of the company. You want them to be able to twitter, but at the same time they shouldn’t talk gibberish. As a company, you want to be very clear about everything, also toward your employees. But how can you be clear when it is difficult to plan and develop a leading strategy? You have to be flexible and fast, but that means risk going off the rails. One wrong tweet and your credit rating can fall from a Triple A to a Triple C.”
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