I.3 What could the economic structure of an anarchist society look like?

Here we will examine a possible framework of a libertarian-socialist economy. It should be kept in mind that in practice it is impossible to separate the economic realm from the social and political realms, as there are numerous interconnections between them. Also, by discussing the economy first we are not implying that dealing with economic domination is more important than dealing with other aspects of the total system of domination, e.g. patricentric values, racism, etc. We follow this order of exposition because of the need to present one thing at a time, but it would have been equally easy to start with the social and political structure of anarchy.

The aim of any anarchist society would be to maximize freedom and so creative work. In the words of Noam Chomsky, "[i]f it is correct, as I believe it is, that a fundamental element of human nature is the need for creative work or creative inquiry, for free creation without the arbitrary limiting effects of coercive institutions, then of course it will follow that a decent society should maximize the possibilities for this fundamental human characteristic to be realized. Now, a federated, decentralized system of free associations incorporating economic as well as social institutions would be what I refer to as anarcho-syndicalism. And it seems to me that it is the appropriate form of social organization for an advanced technological society, in which human beings do not have to be forced into the position of tools, of cogs in a machine."

So, as one might expect, since the essence of anarchism is opposition to hierarchical authority, anarchists totally oppose the way the current economy is organised. This is because authority in the economic sphere is embodied in centralized, hierarchical workplaces that give an elite class (capitalists) dictatorial control over privately owned means of production, turning the majority of the population into order takers (i.e. wage slaves). In constrast, the libertarian-socialist "economy" will be based on decentralized, equalitarian workplaces ("syndicates") in which workers democratically self-manage socially owned means of production. Let's begin with the concept of syndicates.

The key principles of libertarian socialism are decentralization, self-management by direct democracy, voluntary association, and federation. These principles determine the form and function of both the economic and political systems. In this section we'll consider just the economic system. Bakunin gives an excellent overview of such an economy when he writes: "The land belongs to only those who cultivate it with their own hands; to the agricultural communes. The capital and all the tools of production belong to the workers; to the workers' associations . . . The future political organisation should be a free federation of workers." [Bakunin on Anarchy, p. 247]

The essential economic concept for libertarian socialists is workers' control. However, this concept needs careful explanation, because, like the terms "anarchist" and "libertarian," "workers' control" is also is being co-opted by capitalists.

As anarchists use the term, workers'control means collective worker ownership and self-management of all aspects of production and distribution, through participatory-democratic workers' councils, agricultural syndicates, and people's financial institutions which perform all functions formerly reserved for capitalist owners, executives, and financiers.

"Workers' ownership" in its most limited sense refers merely to the ownership of individual firms by their workers. In such firms, surpluses (profits) would be either equally divided between all full-time members of the cooperative or divided unequally on the basis of the type of work done, with the percentages allotted to each type being decided by democratic vote, on the principle of one worker, one vote.

Worker cooperatives of this type do have the virtue of preventing the exploitation of wage labor by capital, since workers are not hired for wages but, in effect, become partners in the firm, so that the value-added that they produce is not appropriated by a privileged elite. However, this does not mean that all forms of economic domination and exploitation would be eliminated if worker ownership were confined merely to individual firms. In fact, most social anarchists believe this type of system would degenerate into a kind of "petty-bourgeois cooperativism" in which worker-owned firms would act as syndicate capitalists and compete against each other in the market as ferociously as the previously individual capitalists. This would also lead to a situation where market forces ensured that the workers involved made irrational decisions (from both a social and individual point of view) in order to survive in the market. As these problems were highlighted in section I.1.3 ("What's wrong with markets anyway?"), we will not repeat ourselves here.

For individualist anarchists, this "irrationality of rationality" is the price to be paid for a free market and any attempt to overcome this problem holds numerous dangers to freedom.

Social anarchists disagree. They think cooperation between workplaces can increase, not reduce, freedom. Social anarchists' proposed solution is society-wide ownership of the major means of production and distribution, based on the anarchist principle of voluntary federation, with confederal bodies or coordinating councils at two levels: first, between all firms in a particular industry; and second, between all industries, agricultural syndicates, and people's financial institutions throughout the society. As Berkman put it, "[a]ctual use will be considered the only title - not to ownership but to possession. The organisation of the coal miners, for example, will be in charge of the coal mines, not as owners but as the operating agency. Similarly will the railroad brotherhoods run the railroads, and so on. Collective possession, co-operatively managed in the interests of the community, will take the place of personal ownership privately conducted for profit." [ABC of Anarchism, p. 69]

While, for many anarcho-syndicalists, this structure is seen as enough, many communist-anarchists consider that the economic federation should be held accountable to society as a whole (i.e. the economy must be communalised). This is because not everyone in society is a worker (e.g. the young, the old and infirm) nor will everyone belong to a syndicate (e.g. the self-employed), but as they also have to live with the results of economic decisions, they should have a say in what happens. In other words, in communist-anarchism, workers' make the day-to-day decisions concerning their work and workplaces, while the social criteria behind these decisions are made by everyone.

In this type of economic system, workers' assemblies and councils would be the focal point, formulating policies for their individual workplaces and deliberating on industry-wide or economy-wide issues though general meetings of the whole workforce in which everyone would participate in decisionmaking. Voting in the councils would be direct, whereas in larger confederal bodies, voting would be carried out by temporary, unpaid, mandated, and instantly recallable delegates, who would resume their status as ordinary workers as soon as their mandate had been carried out.

"Mandated" here means that delegates from workers' councils to meetings of higher confederal bodies would be instructed, at every level of confederation, by the workers they represent on how to deal with any issue. The delegates would be given imperative mandates (binding instructions) that committed them to a framework of policies within which they would have to act, and they could be recalled and their decisions revoked at any time for failing to carry out the mandates they were given. Because of this right of mandating and recalling their delegates, workers' councils would be the source of and final authority over policy for all higher levels of confederal coordination of the economy.

A society-wide economic federation of this sort is clearly not the same thing as a centralized state agency, as in the concept of nationalized or state-owned industry. Rather, it is a decentralized, participatory-democratic organization whose members can secede at any time and in which all power and initiative arises from and flows back to the grassroots level. Thus Kropotkin's summary of what anarchy would look like:

"harmony in such a society being obtained, not by submission to law, or by obedience to any authority, but by free agreements concluded between the various groups, territorial and professional, freely constituted for the sake of production and consumption, as also for the satisfaction of the infinite variety of needs and aspirations of a civilized being. In a society developed on these lines. . . voluntary associations. . . would represent an interwoven network, composed of an infinite variety of groups and federations of all sizes and degrees, local, regional, national and international temporary or more or less permanent - for all possible purposes: production, consumption and exchange, communications, sanitary arrangements, education, mutual protection, defence of the territory, and so on; and, on the other side, for the satisfaction of an ever-increasing number of scientific, artistic, literary and sociable needs. Moreover, such a society would represent nothing immutable. On the contrary - as is seen in organic life at large - harmony would (it is contended) result from an ever-changing adjustment and readjustment of equilibrium between the multitudes of forces and influences, and this adjustment would be the easier to obtain as none of the forces would enjoy a special protection from the state." ["Anarchism", from The Encyclopaedia Britannica, 1910]

If this type of system sounds "utopian" it should be kept in mind that it was actually implemented and worked quite well in the collectivist economy organized during the Spanish Revolution of 1936, despite the enormous obstacles presented by an ongoing civil war as well as the relentless (and eventually successful) efforts of both the Stalinists and Fascists to crush it. (See Sam Dolgoff, The Anarchist Collectives: Workers' Self-management in the Spanish Revolution, 1936-1939, New York: Free Life Editions, 1974).

As well as this (and other) examples of "anarchy in action" there have been other libertarian socialist economic systems described in writing. All share the common features of workers' self-management, cooperation and so on we discuss here and in section I.4. These texts include Syndicalism by Tom Brown, The Program of Anarcho-Syndicalism by G.P. Maximoff, Guild Socialism Restated by G.D.H. Cole, After the Revolution by Abad de Santillan, Anarchist Economics and Principles of Libertarian Economy by Abraham Guillen, Workers Councils and the Economics of a Self-Managed Society by Cornelius Castoriadis among others. Also worth reading are The Political Economy of Participatory Economics and Looking Forward by Micheal Albert and Robin Hanel which contain some useful ideas. Fictional accounts include William Morris' News from Nowhere, The Dispossessed by Ursula Le Guin and Women on the Edge of Time by Marge Piercy.

I.3.1 What is a "syndicate"?

As we will use the term, a "syndicate" (often called a "producer cooperative," or "cooperative" for short, sometimes "collective" or "association of producers" or "guild factory" or "guild workplace") is a democratically self-managed productive enterprise whose productive assets are either owned by its workers or by society as a whole.

It is important to note that individuals who do not wish to join syndicates will be able to work for themselves. There is no "forced collectivization" under any form of libertarian socialism, because coercing people is incompatible with the basic principles of anarchism. Those who wish to be self-employed will have free access to the productive assets they need, provided that they neither attempt to monopolize more of those assets than they and their families can use by themselves nor attempt to employ others for wages (see section I.3.7).

In many ways a syndicate is similar to a cooperative under capitalism. Indeed, Bakunin argued that anarchists are "convinced that the cooperative will be the preponderant form of social organisation in the future, in every branch of labour and science" [Basic Bakunin, p. 153]. Therefore, even from the limited examples of cooperatives functioning in the capitalist market, the essential features of a libertarian socialist economy can be seen. The basic economic element, the workplace, will be a free association of individuals, who will organise their joint work cooperatively.

"Cooperation" in this context means that the policy decisions related to their association will be based on the principle of "one member, one vote," with "managers" and other administrative staff elected and held accountable to the workplace as a whole. Workplace self-management does not mean, as many apologists of capitalism suggest, that knowledge and skill will be ignored and all decisions made by everyone.

This is an obvious fallacy, since engineers, for example, have a greater understanding of their work than non-engineers and under workers' self-management will control it directly. As G.D.H. Cole argues, "we must understand clearly wherein this Guild democracy consists, and especially how it bears on relations between different classes of workers included in a single Guild. For since a Guild includes all the workers by hand and brain engaged in a common service, it is clear that there will be among its members very wide divergences of function, of technical skill, and of administrative authority. Neither the Guild as a whole nor the Guild factory can determine all issues by the expedient of the mass vote, nor can Guild democracy mean that, on all questions, each member is to count as one and none more than one. A mass vote on a matter of technique understood only by a few experts would be a manifest absurdity, and, even if the element of technique is left out of account, a factory administered by constant mass votes would be neither efficient nor at all a pleasant place to work in. There will be in the Guilds technicians occupying special positions by virtue of their knowledge, and there will be administrators possessing special authority by virtue both of skill an ability and of personal qualifications" [G.D.H. Cole, Guild Socialism Restated, pp. 50-51]

The fact that decision-making powers would be delegated in this manner sometimes leads people to ask whether a syndicate would not just be another form of hierarchy. The answer is that it would not be hierarchical because the workers' councils, open to all workers, would decide what types of decision-making powers to delegate, thus ensuring that ultimate power rests at the mass base. For example, if it turned out that a certain type of delegated decision-making power was being abused, it could be revoked by the whole workforce. Because of this grassroots control, there is every reason to think that crucial types of decision-making powers with the potential for seriously affecting all workers' lives -- powers that are now exercised in an authoritarian manner by managers under capitalism, such that of hiring and firing, introducing new production methods or technologies, changing product lines, relocating production facilities, etc. -- would not be delegated but would remain with the workers' assemblies.

As Malatesta put it, "of course in every large collective undertaking, a division of labour, technical management, administration, etc. is necessary. But authoritarians clumsily play on words to produce a raison d'etre for government out of the very real need for the organisation of work. . . [However] Government means the delegation of power, that is the abdication of initiative and sovereignty of all into the hands of a few; administration means the delegation of work, that is tasks given and received, free exchange of services based on free agreement. . .let one not confuse the function of government with that of an administration, for they are essentially different, and if today the two are often confused, it is only because of economic and political privilege" [Anarchy, pp. 39-40].

What about entry into a syndicate? In the words of Cole, workers syndicates are "open associations which any man [or woman] may join" but "this does not mean, of course, that any person will be able to claim admission, as an absolute right, into the guild of his choice." [Op. Cit., p. 75] This means that there may be training requirements (for example) and obviously "a man [or woman] clearly cannot get into a Guild [i.e. syndicate] unless it needs fresh recruits for its work. [The worker] will have free choice, but only of the available openings." [Ibib.] Obviously, as in any society, an individual may not be able to pursue the work they are most interested (although given the nature of an anarchist society they would have the free time to pursue it as a hobby). However, we can imagine that an anarchist society would take an interest in ensuring a fair distribution of work and so would try to arrange work sharing if a given workplacement is popular.

Of course there may be the danger of a syndicate or guild trying to restrict entry from an ulterior motive. The ulterior motive would, of course, be the exploitation of monopoly power visavis other groups in society. However, in an anarchist society individuals would be free to form their own syndicates and so ensure that such activity is self-defeating. In addition, in a non-mutualist anarchist system, syndicates would be part of a confederation (see section I.3.4). It is a responsibility of the inter-syndicate congresses to assure that membership and employment in the syndicates is not restricted in any antisocial way. If an individual or group of individuals felt that they had been unfairly excluded from a syndicate then an investigation into the case would be organised at the congress. In this way any attempts to restrict entry would be reduced (assuming they occured to begin with). And, of course, individuals are free to form new syndicates or leave the confederation if they so desire (see section I.4.13 on the question of who will do unpleasant work in an anarchist society).

New syndicates will be created upon the initiative of individuals within communities. These may be the initiative of workers in an existing syndicate who desire to expand production, or members of the local community who see that the current syndicates are not providing adequately in a specific area of life. Either way, the syndicate will be a voluntary association for producing useful goods or services and would spring up and disappear as required. Therefore, an anarchist society would see syndicates developing spontaneously as individuals freely associate to meet their needs, with both local and confederal initatives taking place. (The criteria for investment decisions is discussed in section I.4.7.

To sum up, syndicates are voluntary associations of workers who manage their workplace and their own work. Within the syndicate, the decisions which affect how the workplace develops and changes are in the hands of those who work there. In addition, it means that the each section of the workforce manages its own activity and sections and that all workers placed in administration tasks (i.e. "management") are subject to election and recall by those who are affected by their decisions. (Workers' self-management is discussed further in section I.3.2).

I.3.2 What is workers' self-management?

Quite simply, "workers' self-management" (sometimes called "workers' control") means that all workers affected by a decision have an equal voice in making it, on the principle of "one worker, one vote." As noted earlier, however, we need to be careful when using the term "workers' control," as the concept is currently being co-opted by the ruling elite, which is to say that it is becoming popular among sociologists, industrial managers, and social-democratic union leaders, and so is taking on an entirely different meaning from the one intended by anarchists (who originated the term).

In the hands of capitalists, "workers' control" is now referred to by such terms as "participation," "democratization," "co-determination," "consensus," "empowerment", "Japanese-style management," etc. As Sam Dolgoff notes, "For those whose function it is solve the new problems of boredom and alienation in the workplace in advanced industrial capitalism, workers' control is seen as a hopeful solution. . . . a solution in which workers are given a modicum of influence, a strictly limited area of decision-making power, a voice at best secondary in the control of conditions of the workplace. Workers' control, in a limited form sanctioned by the capitalists, is held to be the answer to the growing non-economic demands of the workers" ["Workers' Control" in The Anarchist Collectives, ed. Sam Dolgoff, Free Life Editions, 1974, p. 81].

The new managerial fad of "quality circles" -- meetings where workers are encouraged to contribute their ideas on how to improve the company's product and increase the efficiency with which it is made -- is an example of "workers' control" as conceived by capitalists. However, when it comes to questions such as what products to make, where to make them, and (especially) how revenues from sales should be divided among the workforce and invested, capitalists and managers don't ask for or listen to workers' "input." So much for "democratization," "empowerment," and "participation!" In reality, capitalistic "workers control" is merely an another insidious attempt to make workers more willing and "cooperative" partners in their own exploitation.

Hence we prefer the term "workers' self-management" -- a concept which refers to the exercise of workers' power through collectivization and federation (see below). Self-management in this sense "is not a new form of mediation between the workers and their capitalist bosses, but instead refers to the very process by which the workers themselves overthrow their managers and take on their own management and the management of production in their own workplace. Self-management means the organization of all workers . . . into a workers' council or factory committee (or agricultural syndicate), which makes all the decisions formerly made by the owners and managers" [Ibid., p. 81].

Therefore workers' self-management is based around general meetings of the whole workforce, held regularly in every industrial or agricultural syndicate. These are the source of and final authority over decisions affecting policy within the workplace as well as relations with other syndicates. These meeting elect workplace councils whose job is to implement the decisions of these assemblies and to make the day to day administration decisions that will crop up. These councils are directly accountable to the workforce and its members subject to re-election and instant recall. It is also likely that membership of these councils will be rotated between all members of the syndicate to ensure that no one monopolises an administrative position. In addition, smaller councils and assemblies would be organised for divisions, units and work teams as circumstances dictate.

It is the face-to-face meetings that bring workers directly into the management process and give them power over the economic decisions that affect their lives. In social anarchism, since the means of production are owned by society as a whole, decisions on matters like how to apportion the existing means of production among the syndicates, how to distribute and reinvest the surpluses, etc. will be made by the grassroots social units, i.e. the community assemblies (see section I.5.2), not by the workers' councils. This does not mean that workers will have no voice in decisions about such matters, but only that they will vote on them as citizens in their local community assemblies, not as workers in their local syndicates. As mentioned before, this is because not everyone will belong to a syndicate, yet everyone will still be affected by economic decisions of the above type. This is an example of how the social/political and economic structures of social anarchy are intertwined.

I.3.3 What role do syndicates play in the "economy"?

As we have seen, private ownership of the means of production is the lynchpin of capitalism, because it is the means by which capitalists are able to exploit workers by appropriating surplus value from them. To eliminate such exploitation, anarchists propose that social capital -- productive assets such as factories and farmland -- be owned by society as a whole and shared out among syndicates and self-employed individuals by directly democratic methods, through face-to-face voting of the whole electorate in local neighbourhood and community assemblies, which will be linked together through voluntary federations. It does not mean that the state owns the means of production, as under Marxism-Leninism or social democracy, because there is no state under libertarian socialism. (For more on neighbourhood and community assemblies, see sections I.5.2 and I.5.3).

Production for use rather than profit is the key concept that distinguishes collectivist and communist forms of anarchism from market socialism or from the competitive forms of mutualism advocated by Proudhon and the individualist anarchists. Under mutualism, workers organize themselves into syndicates, but ownership of a syndicate's capital is limited to its workers rather than resting with the whole society. Under most versions of market socialism, the state owns the social capital but the syndicates use it to pursue profits, which are retained by and divided among the members of the individual syndicates. Thus both mutualism and market socialism are forms of "petty-bourgeois cooperativism" in which the worker-owners of the cooperatives function as collective "capitalists", competing in the marketplace with other cooperatives for customers, profits, raw materials, etc. -- a situation that gives rise to many of the same problems that arise under capitalism (see section H.4).

In contrast, within anarcho-collectivism and anarcho-communism, society as a whole owns the social capital, which allows for the elimination of both competition for profits and the tendency for workers to develop a proprietary interest the enterprises in which they work. This in turn enables goods to be either sold at their production prices so as to reduce their cost to consumers or distributed in accordance with communist principles (namely free); it facilitates efficiency gains through the consolidation of formerly competing enterprises; and it eliminates the many problems due to the predatory nature of capitalist competition, including the destruction of the environment through the "grow or die" principle, the development of oligopolies from capital concentration and centralization, and the business cycle, with its periodic recessions and depressions.

For social anarchists, therefore, libertarian socialism is based on decentralised decisionmaking within the framework of communally-owned but independently-run and worker-self-managed syndicates (or cooperatives).

In other words, the economy is communalised, with land and the means of production being turned into communal "property." The community determines the social and ecological framework for production while the workforce makes the day-to-day decisions about what to produce and how to do it. This is because a system based purely on workplace assemblies effectively disenfranchises those individuals who do not work but live with the effects of production (e.g., ecological disruption). In Howard Harkins' words, "the difference between workplace and community assemblies is that the internal dynamic of direct democracy in communities gives a hearing to solutions that bring out the common ground and, when there is not consensus, an equal vote to every member of the community." ["Community Control, Workers' Control and the Cooperative Commonwealth", pp. 55-83, Society and Nature No. 3, p. 69]

This means that when a workplace joins a confederation, that workplace is communalised as well as confederated. In this way, workers' control is placed within the broader context of the community, becoming an aspect of community control. This does not that workers' do not control what they do or how they do it. Rather, it means that the framework within which they make their decisions is determined by the community. For example, the local community may decide that production should maximise recycling and minimise pollution, and workers informed of this decision make investment and production decisions accordingly. In addition, consumer groups and cooperatives may be given a voice in the confederal congresses of syndicates or even in the individual workplaces (although it would be up to local communities to decide whether this would be practical or not).

Given the general principle of social ownership and the absence of a state, there is considerable leeway regarding the specific forms that collectivization might take -- for example, in regard to methods of surplus distribution, the use or non-use of money, etc. -- as can be seen by the different systems worked out in various areas of Spain during the Revolution of 1936-39 (as described, for example, in Sam Dolgoff's The Anarchist Collectives).

Nevertheless, democracy is undermined when some communities are poor while others are wealthy. Therefore the method of surplus distribution must insure that all communities have an adequate share of pooled revenues and resources held at higher levels of confederation as well as guaranteed minimum levels of public services and provisions to meet basic human needs.

I.3.4 What relations would exist between individual syndicates?

Just as individuals associate together to work on and overcome common problems, so would syndicates. Few, if any workplaces are totally independent of others, but require raw materials as inputs and consumers for their products. Therefore there will be links between different syndicates. These links are twofold: firstly, free agreements between individual syndicates, and secondly, confederations of syndicates (within branches of industry and regionally). Let's consider free agreement first.

Anarchists recognise the importance of letting people organise their own lives. This means that they reject central planning and instead urge direct links between workers' associations. Those directly involved in production know their needs far better than any bureaucrat. Therefore anarchists think that "[i]n the same way that each free individual has associated with his brothers [and sisters!] to produce . . .all that was necessary for life, driven by no other force than his desire for the full enjoyment of life, so each institution is free and self-contained, and cooperates and enters into agreements with others because by so doing it extends its own possibilities." [George Barret, The Anarchist Revolution, p. 18] An example of one such agreement would be orders for products and services.

This suggests a decentralised economy -- even more decentralised than capitalism (which is "decentralized" only in capitalist mythology, as shown by big business and transnational corporations, for example) -- one "growing ever more closely bound together and interwoven by free and mutual agreements." [Ibid., p. 18] For social anarchists, this would take the form of "free exchange without the medium of money and without profit, on the basis of requirement and the supply at hand." [Alexander Berkman, ABC of Anarchism, p. 69]

Therefore, an anarchist economy would be based on spontaneous order as workers practiced mutual aid and free association. The anarchist economy "starts from below, not from above. Like an organism, this free society grows into being from the simple unit up to the complex structure. The need for . . . the individual struggle for life . . . is . . .sufficient to set the whole complex social machinery in motion. Society is the result of the individual struggle for existence; it is not, as many suppose, opposed to it." [G. Barret, Op. Cit., p. 18]

In other words, "[t]his factory of ours is, then, to the fullest extent consistent with the character of its service, a self-governing unit, managing its own productive operations, and free to experiment to the heart's content in new methods, to develop new styles and products. . . This autonomy of the factory is the safeguard. . . against the dead level of medicocrity, the more than adequate substitute for the variety which the competitive motive was once supposed to stimulate, the guarantee of liveliness, and of individual work and workmanship." [G.D.H. Cole, Guild Socialism Restated, p. 59]

This brings us to the second form of relationships between syndicates, namely confederations of syndicates. If individual or syndicate activities spread beyond their initial locality, they would probably reach a scale at which they would need to constitute a confederation. At this scale, industrial confederations of syndicates are necessary to aid communication between workplaces who produce the same goods. No syndicate exists in isolation, and so there is a real need for a means by which syndicates can meet together to discuss common interests and act on them.

A confederation of syndicates (called a "guild" by some libertarian socialists, or "industrial union" by others) works on two levels: within an industry and across industries. The basic operating principle of these confederations is the same as that of the syndicate itself -- voluntary cooperation between equals in order to meet common needs. In other words, each syndicate in the confederation is linked by horizontal agreements with the others, and none owe any obligations to a separate entity above the group (see section A.11, "Why are anarchists in favour of direct democracy?" for more on the nature of anarchist confederation).

As such, the confederations reflect anarchist ideas of free association and decentralised organisation as well as concern for practical needs:

"Anarchists are strenuously opposed to the authoritarian, centralist spirit . . . So they picture a future social life in the basis of federalism, from the individual to the municipality, to the commune, to the region, to the nation, to the international, on the basis of solidarity and free agreement. And it is natural that this ideal should be reflected also in the organisation of production, giving preference as far as possible, to a decentralised sort of organisation; but this does not take the form of an absolute rule to be applied in every instance. A libertarian order would be in itself, on the other hand, rule out the possibility of imposing such a unilateral solution." [Luigi Fabbri, "Anarchy and 'Scientific Communism", pp. 13-49, The Poverty of Statism, Albert Meltzer (ed), p. 23]

As would be imagined, these confederations are voluntary associations and "[j]ust as factory autonomy is vital in order to keep the Guild system alive and vigorous, the existance of varying democratic types of factories in independence of the National Guilds may also be a means of valuable experiment and fruitful initiative of individual minds. In insistently refusing to carry their theory to its last 'logical' conclusion, the Guildsman [and anarchists] are true to their love of freedom and varied social enterprise." [G.D.H. Cole, Op. Cit., p. 65]

If a workplace agrees to confederate, then it gets to share in the resources of the confederation and so gains the benefits of mutual aid. In return for the benefits of confederal cooperation, the syndicate's tools of production become the "property" of society, to be used but not owned by those who work in them. This does not mean centralised control from the top, for "when we say that ownership of the tools of production, including the factory itself, should revert to the corporation [i.e. confederation] we do not mean that the workers in the individual workshops will be ruled by any kind of industrial government having power to do what it pleases with [them]. . . . No, the workers. . .[will not] hand over their hard-won control. . . to a superior power. . . . What they will do is. . . to guarantee reciprocal use of their tools of production and accord their fellow workers in other factories the right to share their facilities [and vice versa]. . .with [all] whom they have contracted the pact of solidarity." [James Guillaume, Bakunin on Anarchism, pp. 363-364]

Facilitating this type of cooperation is the major role of inter-industry confederations, which also ensure that when the members of a syndicate change work to another syndicate in another (or the same) branch of industry, they have the same rights as the members of their new syndicate. In other words, by being part of the confederation, a worker ensures that s/he has the same rights and an equal say in whatever workplace is joined. This is essential to ensure that a cooperative society remains cooperative, as the system is based on the principle of "one person, one vote" by all those involved the work process.

So, beyond this reciprocal sharing, what other roles does the confederation play? Basically, there are two. Firstly, the sharing and coordination of information produced by the syndicates (as will be discussed in section I.3.5), and, secondly, determining the response to the changes in production and consumption indicated by this information. As the "vertical" links between syndicates are non-hierarchical, each syndicate remains self-governing. This ensures decentralisation of power and direct control, initiative, and experimentation by those involved in doing the work. Hence, "the internal organisation [of one syndicate] ... need not be identical [to others]: Organisational forms and procedures will vary greatly according to the preferences of the associated workers" [Ibid., p. 361]. In practice, this would probably mean that each syndicate gets its own orders and determines the best way to satisfy them (i.e. manages its own work and working conditions).

As indicated above, free agreement will ensure that customers would be able to choose their own suppliers, meaning that production units would know whether they were producing what their customers wanted, i.e., whether they were meeting social need as expressed through demand. If they were not, customers would go elsewhere, to other production units within the same branch of production. However, the investment response to consumer actions would be coordinated by a confederation of syndicates in that branch of production. By such means, the confederation can ensure that resources are not wasted by individual syndicates over-producing goods or over-investing in response to changes in production (see section I.3.5).

It should be pointed out that these confederated investment decisions will exist along with the investments associated with the creation of new syndicates, plus internal syndicate investment decisions. We are not suggesting that every investment decision is to be made by the confederations. (This would be particularly impossible for new industries, for which a confederation would not exist!) Therefore, in addition to coordinated production units, an anarchist society would see numerous small-scale, local activities which would ensure creativity, diversity, and flexibility. Only after these activities had spread across society would confederal coordination become necessary.

Thus, investment decisions would be made at congresses and plenums of the industry's syndicates, by a process of horizontal, negotiated coordination. This model combines "planning" with decentralisation. Major investment decisions are coordinated at an appropriate level, with each unit in the confederation being autonomous, deciding what to do with its own productive capacity in order to meet social demand. In other words, "[t]his factory of ours is, then, to the fullest extent consistent with the character of its service, a self-governing unit, managing its own productive operations, and free to experiment to the heart's content in new methods, to develop new styles and products. . . This autonomy of the factory is the safeguard. . . against the dead level of medicocrity, the more than adequate substitute for the variety which the competitive motive was once supposed to stimulate, the guarantee of liveliness, and of individual work and workmanship." [G.D.H. Cole, Guild Socialism Restated, p. 59]

This brings us to the second form of relationships between syndicates, namely confederations of syndicates. If individual or syndicate activities spread beyond their initial locality, they would probably reach a scale at which they would need to constitute a confederation. At this scale, industrial confederations of syndicates are necessary to aid communication between workplaces who produce the same goods. No syndicate exists in isolation, and so there is a real need for a means by which syndicates can meet together to discuss common interests and act on them.

A confederation of syndicates (called a "guild" by some libertarian socialists, or "industrial union" by others) works on two levels: within an industry and across industries. The basic operating principle of these confederations is the same as that of the syndicate itself -- voluntary cooperation between equals in order to meet common needs. In other words, each syndicate in the confederation is linked by horizontal agreements with the others, and none owe any obligations to a separate entity above the group (see section A.11, "Why are anarchists in favour of direct democracy?" for more on the nature of anarchist confederation).

As such, the confederations reflect anarchist ideas of free association and decentralised organisation as well as concern for practical needs:

"Anarchists are strenuously opposed to the authoritarian, centralist spirit . . . So they picture a future social life in the basis of federalism, from the individual to the municipality, to the commune, to the region, to the nation, to the international, on the basis of solidarity and free agreement. And it is natural that this ideal should be reflected also in the organisation of production, giving preference as far as possible, to a decentralised sort of organisation; but this does not take the form of an absolute rule to be applied in every instance. A libertarian order would be in itself, on the other hand, rule out the possibility of imposing such a unilateral solution." [Luigi Fabbri, "Anarchy and 'Scientific Communism", pp. 13-49, The Poverty of Statism, Albert Meltzer (ed), p. 23]

As would be imagined, these confederations are voluntary associations and "[j]ust as factory autonomy is vital in order to keep the Guild system alive and vigorous, the existance of varying democratic types of factories in independence of the National Guilds may also be a means of valuable experiment and fruitful initiative of individual minds. In insistently refusing to carry their theory to its last 'logical' conclusion, the Guildsman [and anarchists] are true to their love of freedom and varied social enterprise." [G.D.H. Cole, Op. Cit., p. 65]

If a workplace agrees to confederate, then it gets to share in the resources of the confederation and so gains the benefits of mutual aid. In return for the benefits of confederal cooperation, the syndicate's tools of production become the "property" of society, to be used but not owned by those who work in them. This does not mean centralised control from the top, for "when we say that ownership of the tools of production, including the factory itself, should revert to the corporation [i.e. confederation] we do not mean that the workers in the individual workshops will be ruled by any kind of industrial government having power to do what it pleases with [them]. . . . No, the workers. . .[will not] hand over their hard-won control. . . to a superior power. . . . What they will do is. . . to guarantee reciprocal use of their tools of production and accord their fellow workers in other factories the right to share their facilities [and vice versa]. . .with [all] whom they have contracted the pact of solidarity." [James Guillaume, Bakunin on Anarchism, pp. 363-364]

Facilitating this type of cooperation is the major role of inter-industry confederations, which also ensure that when the members of a syndicate change work to another syndicate in another (or the same) branch of industry, they have the same rights as the members of their new syndicate. In other words, by being part of the confederation, a worker ensures that s/he has the same rights and an equal say in whatever workplace is joined. This is essential to ensure that a cooperative society remains cooperative, as the system is based on the principle of "one person, one vote" by all those involved the work process.

So, beyond this reciprocal sharing, what other roles does the confederation play? Basically, there are two. Firstly, the sharing and coordination of information produced by the syndicates (as will be discussed in section I.3.5), and, secondly, determining the response to the changes in production and consumption indicated by this information. As the "vertical" links between syndicates are non-hierarchical, each syndicate remains self-governing. This ensures decentralisation of power and direct control, initiative, and experimentation by those involved in doing the work. Hence, "the internal organisation [of one syndicate] ... need not be identical [to others]: Organisational forms and procedures will vary greatly according to the preferences of the associated workers" [Ibid., p. 361]. In practice, this would probably mean that each syndicate gets its own orders and determines the best way to satisfy them (i.e. manages its own work and working conditions).

As indicated above, free agreement will ensure that customers would be able to choose their own suppliers, meaning that production units would know whether they were producing what their customers wanted, i.e., whether they were meeting social need as expressed through demand. If they were not, customers would go elsewhere, to other production units within the same branch of production. However, the investment response to consumer actions would be coordinated by a confederation of syndicates in that branch of production. By such means, the confederation can ensure that resources are not wasted by individual syndicates over-producing goods or over-investing in response to changes in production (see section I.3.5).

It should be pointed out that these confederated investment decisions will exist along with the investments associated with the creation of new syndicates, plus internal syndicate investment decisions. We are not suggesting that every investment decision is to be made by the confederations. (This would be particularly impossible for new industries, for which a confederation would not exist!) Therefore, in addition to coordinated production units, an anarchist society would see numerous small-scale, local activities which would ensure creativity, diversity, and flexibility. Only after these activities had spread across society would confederal coordination become necessary.

Thus, investment decisions would be made at congresses and plenums of the industry's syndicates, by a process of horizontal, negotiated coordination. This model combines "planning" with decentralisation. Major investment decisions are coordinated at an appropriate level, with each unit in the confederation being autonomous, deciding what to do with its own productive capacity in order to meet social demand. In other words, "[t]his factory of ours is, then, to the fullest extent consistent with the character of its service, a self-governing unit, managing its own productive operations, and free to experiment to the heart's content in new methods, to develop new styles and products. . . This autonomy of the factory is the safeguard. . . against the dead level of medicocrity, the more than adequate substitute for the variety which the competitive motive was once supposed to stimulate, the guarantee of liveliness, and of individual work and workmanship." [G.D.H. Cole, Guild Socialism Restated, p. 59]

This brings us to the second form of relationships between syndicates, namely confederations of syndicates. If individual or syndicate activities spread beyond their initial locality, they would probably reach a scale at which they would need to constitute a confederation. At this scale, industrial confederations of syndicates are necessary to aid communication between workplaces who produce the same goods. No syndicate exists in isolation, and so there is a real need for a means by which syndicates can meet together to discuss common interests and act on them.

A confederation of syndicates (called a "guild" by some libertarian socialists, or "industrial union" by others) works on two levels: within an industry and across industries. The basic operating principle of these confederations is the same as that of the syndicate itself -- voluntary cooperation between equals in order to meet common needs. In other words, each syndicate in the confederation is linked by horizontal agreements with the others, and none owe any obligations to a separate entity above the group (see section A.11, "Why are anarchists in favour of direct democracy?" for more on the nature of anarchist confederation).

As such, the confederations reflect anarchist ideas of free association and decentralised organisation as well as concern for practical needs:

"Anarchists are strenuously opposed to the authoritarian, centralist spirit . . . So they picture a future social life in the basis of federalism, from the individual to the municipality, to the commune, to the region, to the nation, to the international, on the basis of solidarity and free agreement. And it is natural that this ideal should be reflected also in the organisation of production, giving preference as far as possible, to a decentralised sort of organisation; but this does not take the form of an absolute rule to be applied in every instance. A libertarian order would be in itself, on the other hand, rule out the possibility of imposing such a unilateral solution." [Luigi Fabbri, "Anarchy and 'Scientific Communism", pp. 13-49, The Poverty of Statism, Albert Meltzer (ed), p. 23]

As would be imagined, these confederations are voluntary associations and "[j]ust as factory autonomy is vital in order to keep the Guild system alive and vigorous, the existance of varying democratic types of factories in independence of the National Guilds may also be a means of valuable experiment and fruitful initiative of individual minds. In insistently refusing to carry their theory to its last 'logical' conclusion, the Guildsman [and anarchists] are true to their love of freedom and varied social enterprise." [G.D.H. Cole, Op. Cit., p. 65]

If a workplace agrees to confederate, then it gets to share in the resources of the confederation and so gains the benefits of mutual aid. In return for the benefits of confederal cooperation, the syndicate's tools of production become the "property" of society, to be used but not owned by those who work in them. This does not mean centralised control from the top, for "when we say that ownership of the tools of production, including the factory itself, should revert to the corporation [i.e. confederation] we do not mean that the workers in the individual workshops will be ruled by any kind of industrial government having power to do what it pleases with [them]. . . . No, the workers. . .[will not] hand over their hard-won control. . . to a superior power. . . . What they will do is. . . to guarantee reciprocal use of their tools of production and accord their fellow workers in other factories the right to share their facilities [and vice versa]. . .with [all] whom they have contracted the pact of solidarity." [James Guillaume, Bakunin on Anarchism, pp. 363-364]

Facilitating this type of cooperation is the major role of inter-industry confederations, which also ensure that when the members of a syndicate change work to another syndicate in another (or the same) branch of industry, they have the same rights as the members of their new syndicate. In other words, by being part of the confederation, a worker ensures that s/he has the same rights and an equal say in whatever workplace is joined. This is essential to ensure that a cooperative society remains cooperative, as the system is based on the principle of "one person, one vote" by all those involved the work process.

So, beyond this reciprocal sharing, what other roles does the confederation play? Basically, there are two. Firstly, the sharing and coordination of information produced by the syndicates (as will be discussed in section I.3.5), and, secondly, determining the response to the changes in production and consumption indicated by this information. As the "vertical" links between syndicates are non-hierarchical, each syndicate remains self-governing. This ensures decentralisation of power and direct control, initiative, and experimentation by those involved in doing the work. Hence, "the internal organisation [of one syndicate] ... need not be identical [to others]: Organisational forms and procedures will vary greatly according to the preferences of the associated workers" [Ibid., p. 361]. In practice, this would probably mean that each syndicate gets its own orders and determines the best way to satisfy them (i.e. manages its own work and working conditions).

As indicated above, free agreement will ensure that customers would be able to choose their own suppliers, meaning that production units would know whether they were producing what their customers wanted, i.e., whether they were meeting social need as expressed through demand. If they were not, customers would go elsewhere, to other production units within the same branch of production. However, the investment response to consumer actions would be coordinated by a confederation of syndicates in that branch of production. By such means, the confederation can ensure that resources are not wasted by individual syndicates over-producing goods or over-investing in response to changes in production (see section I.3.5).

It should be pointed out that these confederated investment decisions will exist along with the investments associated with the creation of new syndicates, plus internal syndicate investment decisions. We are not suggesting that every investment decision is to be made by the confederations. (This would be particularly impossible for new industries, for which a confederation would not exist!) Therefore, in addition to coordinated production units, an anarchist society would see numerous small-scale, local activities which would ensure creativity, diversity, and flexibility. Only after these activities had spread across society would confederal coordination become necessary.

Thus, investment decisions would be made at congresses and plenums of the industry's syndicates, by a process of horizontal, negotiated coordination. This model combines "planning" with decentralisation. Major investment decisions are coordinated at an appropriate level, with each unit in the confederation being autonomous, deciding what to do with its own productive capacity in order to meet social demand. In other words, "[t]his factory of ours is, then, to the fullest extent consistent with the character of its service, a self-governing unit, managing its own productive operations, and free to experiment to the heart's content in new methods, to develop new styles and products. . . This autonomy of the factory is the safeguard. . . against the dead level of medicocrity, the more than adequate substitute for the variety which the competitive motive was once supposed to stimulate, the guarantee of liveliness, and of individual work and workmanship." [G.D.H. Cole, Guild Socialism Restated, p. 59]

This brings us to the second form of relationships between syndicates, namely confederations of syndicates. If individual or syndicate activities spread beyond their initial locality, they would probably reach a scale at which they would need to constitute a confederation. At this scale, industrial confederations of syndicates are necessary to aid communication between workplaces who produce the same goods. No syndicate exists in isolation, and so there is a real need for a means by which syndicates can meet together to discuss common interests and act on them.

A confederation of syndicates (called a "guild" by some libertarian socialists, or "industrial union" by others) works on two levels: within an industry and across industries. The basic operating principle of these confederations is the same as that of the syndicate itself -- voluntary cooperation between equals in order to meet common needs. In other words, each syndicate in the confederation is linked by horizontal agreements with the others, and none owe any obligations to a separate entity above the group (see section A.11, "Why are anarchists in favour of direct democracy?" for more on the nature of anarchist confederation).

As such, the confederations reflect anarchist ideas of free association and decentralised organisation as well as concern for practical needs:

"Anarchists are strenuously opposed to the authoritarian, centralist spirit . . . So they picture a future social life in the basis of federalism, from the individual to the municipality, to the commune, to the region, to the nation, to the international, on the basis of solidarity and free agreement. And it is natural that this ideal should be reflected also in the organisation of production, giving preference as far as possible, to a decentralised sort of organisation; but this does not take the form of an absolute rule to be applied in every instance. A libertarian order would be in itself, on the other hand, rule out the possibility of imposing such a unilateral solution." [Luigi Fabbri, "Anarchy and 'Scientific Communism", pp. 13-49, The Poverty of Statism, Albert Meltzer (ed), p. 23]

As would be imagined, these confederations are voluntary associations and "[j]ust as factory autonomy is vital in order to keep the Guild system alive and vigorous, the existance of varying democratic types of factories in independence of the National Guilds may also be a means of valuable experiment and fruitful initiative of individual minds. In insistently refusing to carry their theory to its last 'logical' conclusion, the Guildsman [and anarchists] are true to their love of freedom and varied social enterprise." [G.D.H. Cole, Op. Cit., p. 65]

If a workplace agrees to confederate, then it gets to share in the resources of the confederation and so gains the benefits of mutual aid. In return for the benefits of confederal cooperation, the syndicate's tools of production become the "property" of society, to be used but not owned by those who work in them. This does not mean centralised control from the top, for "when we say that ownership of the tools of production, including the factory itself, should revert to the corporation [i.e. confederation] we do not mean that the workers in the individual workshops will be ruled by any kind of industrial government having power to do what it pleases with [them]. . . . No, the workers. . .[will not] hand over their hard-won control. . . to a superior power. . . . What they will do is. . . to guarantee reciprocal use of their tools of production and accord their fellow workers in other factories the right to share their facilities [and vice versa]. . .with [all] whom they have contracted the pact of solidarity." [James Guillaume, Bakunin on Anarchism, pp. 363-364]

Facilitating this type of cooperation is the major role of inter-industry confederations, which also ensure that when the members of a syndicate change work to another syndicate in another (or the same) branch of industry, they have the same rights as the members of their new syndicate. In other words, by being part of the confederation, a worker ensures that s/he has the same rights and an equal say in whatever workplace is joined. This is essential to ensure that a cooperative society remains cooperative, as the system is based on the principle of "one person, one vote" by all those involved the work process.

So, beyond this reciprocal sharing, what other roles does the confederation play? Basically, there are two. Firstly, the sharing and coordination of information produced by the syndicates (as will be discussed in section I.3.5), and, secondly, determining the response to the changes in production and consumption indicated by this information. As the "vertical" links between syndicates are non-hierarchical, each syndicate remains self-governing. This ensures decentralisation of power and direct control, initiative, and experimentation by those involved in doing the work. Hence, "the internal organisation [of one syndicate] ... need not be identical [to others]: Organisational forms and procedures will vary greatly according to the preferences of the associated workers" [Ibid., p. 361]. In practice, this would probably mean that each syndicate gets its own orders and determines the best way to satisfy them (i.e. manages its own work and working conditions).

As indicated above, free agreement will ensure that customers would be able to choose their own suppliers, meaning that production units would know whether they were producing what their customers wanted, i.e., whether they were meeting social need as expressed through demand. If they were not, customers would go elsewhere, to other production units within the same branch of production. However, the investment response to consumer actions would be coordinated by a confederation of syndicates in that branch of production. By such means, the confederation can ensure that resources are not wasted by individual syndicates over-producing goods or over-investing in response to changes in production (see section I.3.5).

It should be pointed out that these confederated investment decisions will exist along with the investments associated with the creation of new syndicates, plus internal syndicate investment decisions. We are not suggesting that every investment decision is to be made by the confederations. (This would be particularly impossible for new industries, for which a confederation would not exist!) Therefore, in addition to coordinated production units, an anarchist society would see numerous small-scale, local activities which would ensure creativity, diversity, and flexibility. Only after these activities had spread across society would confederal coordination become necessary.

Thus, investment decisions would be made at congresses and plenums of the industry's syndicates, by a process of horizontal, negotiated coordination. This model combines "planning" with decentralisation. Major investment decisions are coordinated at an appropriate level, with each unit in the confederation being autonomous, deciding what to do with its own productive capacity in order to meet social demand. In other words, "[t]his factory of ours is, then, to the fullest extent consistent with the character of its service, a self-governing unit, managing its own productive operations, and free to experiment to the heart's content in new methods, to develop new styles and products. . . This autonomy of the factory is the safeguard. . . against the dead level of medicocrity, the more than adequate substitute for the variety which the competitive motive was once supposed to stimulate, the guarantee of liveliness, and of individual work and workmanship." [G.D.H. Cole, Guild Socialism Restated, p. 59]

This brings us to the second form of relationships between syndicates, namely confederations of syndicates. If individual or syndicate activities spread beyond their initial locality, they would probably reach a scale at which they would need to constitute a confederation. At this scale, industrial confederations of syndicates are necessary to aid communication between workplaces who produce the same goods. No syndicate exists in isolation, and so there is a real need for a means by which syndicates can meet together to discuss common interests and act on them.

A confederation of syndicates (called a "guild" by some libertarian socialists, or "industrial union" by others) works on two levels: within an industry and across industries. The basic operating principle of these confederations is the same as that of the syndicate itself -- voluntary cooperation between equals in order to meet common needs. In other words, each syndicate in the confederation is linked by horizontal agreements with the others, and none owe any obligations to a separate entity above the group (see section A.11, "Why are anarchists in favour of direct democracy?" for more on the nature of anarchist confederation).

As such, the confederations reflect anarchist ideas of free association and decentralised organisation as well as concern for practical needs:

"Anarchists are strenuously opposed to the authoritarian, centralist spirit . . . So they picture a future social life in the basis of federalism, from the individual to the municipality, to the commune, to the region, to the nation, to the international, on the basis of solidarity and free agreement. And it is natural that this ideal should be reflected also in the organisation of production, giving preference as far as possible, to a decentralised sort of organisation; but this does not take the form of an absolute rule to be applied in every instance. A libertarian order would be in itself, on the other hand, rule out the possibility of imposing such a unilateral solution." [Luigi Fabbri, "Anarchy and 'Scientific Communism", pp. 13-49, The Poverty of Statism, Albert Meltzer (ed), p. 23]

As would be imagined, these confederations are voluntary associations and "[j]ust as factory autonomy is vital in order to keep the Guild system alive and vigorous, the existance of varying democratic types of factories in independence of the National Guilds may also be a means of valuable experiment and fruitful initiative of individual minds. In insistently refusing to carry their theory to its last 'logical' conclusion, the Guildsman [and anarchists] are true to their love of freedom and varied social enterprise." [G.D.H. Cole, Op. Cit., p. 65]

If a workplace agrees to confederate, then it gets to share in the resources of the confederation and so gains the benefits of mutual aid. In return for the benefits of confederal cooperation, the syndicate's tools of production become the "property" of society, to be used but not owned by those who work in them. This does not mean centralised control from the top, for "when we say that ownership of the tools of production, including the factory itself, should revert to the corporation [i.e. confederation] we do not mean that the workers in the individual workshops will be ruled by any kind of industrial government having power to do what it pleases with [them]. . . . No, the workers. . .[will not] hand over their hard-won control. . . to a superior power. . . . What they will do is. . . to guarantee reciprocal use of their tools of production and accord their fellow workers in other factories the right to share their facilities [and vice versa]. . .with [all] whom they have contracted the pact of solidarity." [James Guillaume, Bakunin on Anarchism, pp. 363-364]

Facilitating this type of cooperation is the major role of inter-industry confederations, which also ensure that when the members of a syndicate change work to another syndicate in another (or the same) branch of industry, they have the same rights as the members of their new syndicate. In other words, by being part of the confederation, a worker ensures that s/he has the same rights and an equal say in whatever workplace is joined. This is essential to ensure that a cooperative society remains cooperative, as the system is based on the principle of "one person, one vote" by all those involved the work process.

So, beyond this reciprocal sharing, what other roles does the confederation play? Basically, there are two. Firstly, the sharing and coordination of information produced by the syndicates (as will be discussed in section I.3.5), and, secondly, determining the response to the changes in production and consumption indicated by this information. As the "vertical" links between syndicates are non-hierarchical, each syndicate remains self-governing. This ensures decentralisation of power and direct control, initiative, and experimentation by those involved in doing the work. Hence, "the internal organisation [of one syndicate] ... need not be identical [to others]: Organisational forms and procedures will vary greatly according to the preferences of the associated workers" [Ibid., p. 361]. In practice, this would probably mean that each syndicate gets its own orders and determines the best way to satisfy them (i.e. manages its own work and working conditions).

As indicated above, free agreement will ensure that customers would be able to choose their own suppliers, meaning that production units would know whether they were producing what their customers wanted, i.e., whether they were meeting social need as expressed through demand. If they were not, customers would go elsewhere, to other production units within the same branch of production. However, the investment response to consumer actions would be coordinated by a confederation of syndicates in that branch of production. By such means, the confederation can ensure that resources are not wasted by individual syndicates over-producing goods or over-investing in response to changes in production (see section I.3.5).

It should be pointed out that these confederated investment decisions will exist along with the investments associated with the creation of new syndicates, plus internal syndicate investment decisions. We are not suggesting that every investment decision is to be made by the confederations. (This would be particularly impossible for new industries, for which a confederation would not exist!) Therefore, in addition to coordinated production units, an anarchist society would see numerous small-scale, local activities which would ensure creativity, diversity, and flexibility. Only after these activities had spread across society would confederal coordination become necessary.

Thus, investment decisions would be made at congresses and plenums of the industry's syndicates, by a process of horizontal, negotiated coordination. This model combines "planning" with decentralisation. Major investment decisions are coordinated at an appropriate level, with each unit in the confederation being autonomous, deciding what to do with its own productive capacity in order to meet social demand. In other words, "[t]his factory of ours is, then, to the fullest extent consistent with the character of its service, a self-governing unit, managing its own productive operations, and free to experiment to the heart's content in new methods, to develop new styles and products. . . This autonomy of the factory is the safeguard. . . against the dead level of medicocrity, the more than adequate substitute for the variety which the competitive motive was once supposed to stimulate, the guarantee of liveliness, and of individual work and workmanship." [G.D.H. Cole, Guild Socialism Restated, p. 59]

This brings us to the second form of relationships between syndicates, namely confederations of syndicates. If individual or syndicate activities spread beyond their initial locality, they would probably reach a scale at which they would need to constitute a confederation. At this scale, industrial confederations of syndicates are necessary to aid communication between workplaces who produce the same goods. No syndicate exists in isolation, and so there is a real need for a means by which syndicates can meet together to discuss common interests and act on them.

A confederation of syndicates (called a "guild" by some libertarian socialists, or "industrial union" by others) works on two levels: within an industry and across industries. The basic operating principle of these confederations is the same as that of the syndicate itself -- voluntary cooperation between equals in order to meet common needs. In other words, each syndicate in the confederation is