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14th JUNE – 1st JULY <strong>2018</strong> Strukturen / Prozesse Structures / Processes 39<br />

The focus of much current policy, social attention and media<br />

bandwidth is devoted to propping up our energy-intensive,<br />

materially greedy economic system. Based on a<br />

20th century economic paradigm, this is a system that reduces<br />

people, communities, and societies to their economic functionality.<br />

But economics should be conducive to the common good,<br />

serving people and communities in order to legitimise itself—as<br />

is written in our constitution.<br />

Our welfare system is funded by the taxable profits of an<br />

economy that is dependent on steady growth and continually<br />

rising demand just to keep pace with gains in productivity. Inevitably,<br />

it has to rely on a continual externalisation of negative<br />

effects and the consequent over-burdening of ecological foundations<br />

and resources – natural commodities – to cut costs and<br />

stay competitive. But when social welfare is based on economic<br />

activity that extracts fundamental material and immaterial resources,<br />

then it is doomed to fail.<br />

Capitalism invalidates itself. Firstly, it destroys its own production<br />

bases without considering conditions for regeneration.<br />

Secondly, it transfers this exploitation into financial capital,<br />

which is accumulated by an ever-shrinking elite, thirdly, the majority<br />

of people are denied the opportunity to participate in market<br />

activity. It becomes the opposite of a market economy, and<br />

contains a dynamic that makes future viability impossible.<br />

However, neither the current basic economic and political<br />

direction nor the regulatory framework are up for debate. This<br />

old developmental path, caught up in the fossil-fuel ideas of the<br />

20th century, has natural, ecological limitations as defined by, for<br />

example, the nine planetary boundaries and global overshoot.<br />

’Old‘ industrial societies based predominantly on the Western<br />

European model remain locked into path dependencies, despite<br />

the fact that the promise of boundless progress and increasing<br />

prosperity is fulfilled less and less often. Now, all indications are<br />

that new forms of business and social relationships are emerging.<br />

They are the result of formerly developing countries ’catching<br />

up‘, new technological possibilities and, above all, new, different<br />

ways of thinking driven by younger generations keen to<br />

overcome old path dependencies. A new relationship between<br />

people and the economy is developing, one in which plurality,<br />

difference, and new forms of subsidiarity are beginning to displace<br />

the ageing, rigid hierarchies and models of governance.<br />

Indicators of these changes include the formation of new<br />

communities in which national, cultural, and linguistic borders<br />

are playing an ever-decreasing role. At the same time, the sharing<br />

economy is proving to be more useful and resource-efficient<br />

than the unlimited accumulation of property by individual owners;<br />

entrepreneurial approaches using collaboration and decentralisation<br />

as a competitive edge are beginning to take hold; new<br />

digital infrastructures such as blockchain, the Internet of Things<br />

and AI exploiting and strengthening subsidiarity and are increasingly<br />

capable of displacing established hierarchical organisational<br />

structures, thus enabling more pluralistic governance<br />

models.<br />

Our experience of the global interdependencies and transboundary<br />

impacts wrought by our economic and political activity—through<br />

climate change, economic development, the food<br />

chain, and refugee movements – is also deepening the profound<br />

changes in our understanding of and interaction with the world.<br />

The demand for a renewal of our relationship with the living<br />

world corresponds to a fundamental reorientation in cultural<br />

evolution.<br />

These dynamics are also having an effect on obsolete ideas<br />

of ownership and economic participation. Because casting the<br />

state in the role of trustee for common natural, social, and economic<br />

commodities did not work properly, and short-term interests<br />

of the few as a burden on the many became politically<br />

prioritised, new concepts of ownership are increasingly taking<br />

root, concepts such as democratic ownership—under the governance<br />

of the people rather than the states—through the re-appropriation<br />

of public resources, securing them against shortsightedness,<br />

incompetence, and the greed of political and<br />

economic interest groups.<br />

A particular preconceived idea of humanity – one that does<br />

not promote empathy and freedom – is, however, proving to be<br />

an obstacle. Institutional confidence in a responsible and collaborative<br />

public is lacking, despite the fact that life experience tells<br />

us something different. Take any standard monoculture forest<br />

and create within it a large, open space – a clearing, a void – and<br />

it will be used and populated with a huge variety of different species.<br />

This happens of its own accord, as evidenced by the last 3.8<br />

billion years of evolution.<br />

The first person to describe themselves as a neoliberal, Walter<br />

Euken, was also the founder of Ordoliberalism. He struggled<br />

to combine liberal development with community focus and<br />

coined the phrase, “Those who reap the benefits must also bear<br />

the costs.” Regulatory policy should replace state rationality and<br />

serve to increase degrees of freedom. An example from constitutional<br />

law is Article 14: “Property entails obligations. Its use<br />

shall also serve the public good.” This applies analogously to the<br />

communal service obligations of private property on the one<br />

hand, and the securing of its protection on the other. In the Civil<br />

Code, however, only the protection of private goods is defined<br />

and justiciable. Anyone can go to court to protect their private<br />

property but, in contrast, the public service obligation for private<br />

goods is not legally defined anywhere. An ordo(liberalism) conducive<br />

to public interest would be one that allowed for the<br />

justiciability of public common interests over private interests.<br />

If there were, for example, a statutory obligation to reveal previously<br />

hidden externalisations by companies, and provision for<br />

judicial claims against unfair competition for producers operating<br />

sustainably, this measure would go a long way towards both<br />

preventing the marketplace from rewarding those companies<br />

that do externalise, and to supporting market access for goods<br />

that are produced fairly and sustainably.<br />

FESTIVAL CENTRE<br />

JUN 28<br />

Daniel Dahm, keynote, Frauke<br />

Burgdorff @ panel ’Does Ownership<br />

come with Responsibility‘<br />

JUN 14<br />

Aurea Leszczynski Vieira Gonçalves<br />

SESC São Paulo @ panel ’New Coalitions<br />

for the Cooperative <strong>City</strong>?‘<br />

HUB<br />

JUN 27–29<br />

’The Principle of the Unfinished‘,<br />

conference and performances @<br />

Universität der Künste Berlin<br />

STUDIO TALK<br />

JUN 1<br />

Pfefferberg: ’Its history – its<br />

foundation model – its architecture‘,<br />

talk with Justus Pysall @ Atelierhaus<br />

Pfefferberg<br />

SESC – ein einzigartiger Sozialvertrag<br />

für die Metropole / A Metropolitan Social<br />

Contract Made Simple<br />

Wenn der Staat die Wirtschaft direkt zu Kasse bittet,<br />

um landesweit autonom agierende Kulturinstitutionen<br />

zu finanzieren, dann hat das einen Namen:<br />

SESC (Serviço Social do Comércio). Diese weltweit einzigartige<br />

Verbindung zwischen Staat und freier Wirtschaft wurde<br />

1964 in Rio de Janeiro aus der Taufe gehoben und hat sich seitdem<br />

auf 572 Standorte in über 2.000 brasilianischen Gemeinden<br />

ausgeweitet. Mehr Gewinn, mehr Geld für Kultur: Der<br />

Staat treibt 1,5 Prozent Lohnsteuer von allen Dienstleistungsfirmen<br />

des Landes ein und verteilt die Mittel direkt an autonom<br />

agierende SESC Niederlassungen. Die kulturelle Vielfalt des<br />

Programmes spricht die gesamte Palette des sozialen Spektrums<br />

an: Kulturprogramm für alle, auch in strukturschwachen<br />

Stadtteilen. Die Idee der steuerlichen Umverteilung zur Kulturförderung<br />

ist natürlich nicht neu, die Unmittelbarkeit und<br />

Einfachheit des SESC Modells ist es schon. Auch nach fünf<br />

Jahrzehnten ist es noch richtungsweisend. / LS<br />

Photo: Linda Vlassenrood<br />

Teil der Stadt: öffentlicher Innenraum im SESC Pompéia / Indoor public space as part of the city<br />

If the state were to directly request the economy to hand over<br />

money in order to finance autonomously-operated cultural<br />

institutions, then this has a name: SESC (Serviço Social do<br />

Comércio). This unparalleled arrangement between the state and<br />

the free economy was instituted in 1964 in Rio de Janeiro, and<br />

has since spread to 572 sites in over 2,000 Brazilian municipalities.<br />

The more profit, the more money for culture: the state imposes<br />

a 1.5% tax on all service-based firms in the country, and<br />

then redistributes the money directly to autonomously-operated<br />

SESC subsidiaries. The cultural diversity of the programme<br />

means that it addresses the entire spectrum of society. Cultural<br />

programmes are available for everybody, even in infrastructurally<br />

weak suburbs. Although the notion of a tax-based distribution<br />

of cultural funding is not new, the immediacy and simplicity<br />

of SESC is unique. Even after five decades, this model is still<br />

groundbreaking. / LS

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