Leigh Phillips — Chile’s Early Cybernetics: How Allende Attempted a Socialist Internet to Organize the Economy

The story of Salvador Allende, president of the first ever democratically elected Marxist administration, who died when General Augusto Pinochet overthrew the young administration in a US-backed coup on 11 September, 1973, is well known amongst progressives.

But the human rights horrors and tales of desaparecidos have eclipsed – quite understandably – the pioneering cybernetic planning work of the Chilean leader, his ministers and a British left-wing operations research scientist and management consultant named Stafford Beer. It was an ambitious, economy-wide experiment that has since been described as the ‘socialist internet’, an effort decades ahead of its time.,,,

The 29-year-old head of the Chilean Production Development Corporation and later finance minister Fernando Flores - responsible for the management and coordination between nationalised companies and the state, and his advisor, Raul Espejo, had been impressed with Beer's prolific writings on management cybernetics, and, like Allende, wanted to construct a socialist economy that was not centralised as the variations on the Soviet theme had been....

Paul Cockshott, a University of Glasgow computer scientist who has written about the possibility of post-capitalist planning aided by computing, is a big admirer of Cybersyn as a practical example of the general type of regulation mechanism he advocates: ‘The big advance with Stafford Beer's experiments with Cybersyn was that it was designed to be a real-time system rather than a system which, as the Soviets had tried, was essentially a batch system in which you made decisions every five years.’...

When the government faced a CIA-backed strike from conservative small businessmen and a boycott by private lorry companies in 1972, food and fuel supplies ran dangerously low. The government faced its gravest existential threat ahead of the coup. It was then that Cybersyn came into its own, when Allende's government realised that the experimental system could be used to circumvent the opposition’s efforts. The network allowed its operators to secure immediate information on where scarcities were at their most extreme and where drivers not participating in the boycott were located and to mobilise or redirect its own transport assets in order to keep goods moving and take the edge of the worst of the shortages. As a result, the truck-owners' boycott was defeated.

Fascinating post. Ahead of its time. I have long thought that something this is eventually going to be the way distribution takes place. The market system is too inefficient since it is so subject to asymmetry.

SolidarityEconomy.Net
Chile’s Early Cybernetics: How Allende Attempted a Socialist Internet to Organize the Economy
Leigh Phillips via Red Pepper UK

Taxing In a Monopoly Fiat Currency Works as Effective Coercion ... To Do What?

Commentary by Roger Erickson

Taxing in a monopoly, fiat currency coerces people to .. be employed? Where? What are the alternatives? Suicide? Revolution? Or, our nation simply needs bigger goals? That's the only positive, and adaptive outlet, and it's always present. Why are we struggling to use that outlet? Simple frictions, from lack of interaction and distributed feedback? We're a victim only of our own distributed confusion and lethargy?  The only thing we have to practice is practice itself?

Return-on-coordination is ALWAYS the highest return, by far. Hence, that culture which is first to put all it's citizens to work - on adaptive goals - will instantly leave all competing cultures in the dust. We just need to imagine goals worthy of all our human resources. What's the alternative? Personal and cultural obesity, functional "diabetes" and accelerated death? BORING. And STIFLING.

Accelerating demand for worthwhile national goals simply cannot be achieved using Central Planning by the 1% - only with improved quality of distributed decision-making and distributed options-exploring. We need the group agility that comes with fiat policy, not just fiat currency. That requires preparation, and planning, and dynamically dispersed interactions, and critical thinking. It requires national practice. Start by giving all your co-citizens lofty goals to achieve, then let us all amaze ourselves with our ingenuity.  Or, you can sit on your ass and hoard "fiat."  Boring.

Hoarding fiat currency is a form, the excess of which defeats it's own function. It's clear that every method is only as useful as it's regulation. We have our fiat, now we have to use it too.  In all it's forms and functions.