:: NETOCRACCY: THE NEW POWER ELITE AND LIFE AFTER CAPITALISM

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INTRODUCTION

This book was born out of the deepest frustration. We could no longer bear the ignorance and childishness of the public debate about the digital future. What was being said and written was to such a depressingly large extent tainted by ideological wishful thinking and/or completely without any foundation in an historical analysis of how a breakthrough of information technology could transform a society. Neither the intoxicated optimists nor the gloomy pessimists have seriously been able to engage in the problematics; they are both right only in the most banal respects, and wrong about everything important. And yet we live and work in Sweden, a country that is constantly held up as an example of the early adoption of new technology and a high degree of globalisation. If we are constantly forced to wade through all this nonsense, whatever must it be like in the rest of the world?

As we wrote in the introduction to the original edition of this book, it is about time that someone got a firm grip of the most difficult and important issues arising when a new form of information technology is breaking through on all fronts: What will happen to the State? What will happen to politics and democracy? What will happen to education and the labour market? What will happen to the creation of identity and patterns of consumption? How will the media, art and philosophy be affected? How will the old class structures be altered, and what will the new class struggles look like? Which groups will be favoured and which harmed by the new circumstances? How will the new electronic networks function? How will power and status be distributed within the new hierarchies that are emerging? What are the interests and strategies of the new elite? What are the characteristics of the new underclass? Which sciences will set the tone? Which social problems will be most acute, and what solutions are available? How will man¹s image of himself and the world change, and what consequences will this have? And so on.

In order to approach these questions, we have had to provide certain basic definitions. The reader needs to know what a dominant information technology is, and what is does; what man is, as both social and biological creature; what power is, and how it is gained. Our reasoning ranges over vast areas and transgresses many boundaries. Experts in different spheres may well be able to find much to argue with in the details, but what interests us is the broader pattern which only emerges if you dare to make breath-taking generalisations. This is a book entirely written in the netocratic spirit described within the book itself.

The original Swedish version of Netocracy ­ The New Power Elite and Life After Capitalism was published in September 2000, and reactions to it were extreme ­ everything from effusive to dismayed. The book went on to top the Swedish bestseller chart for non-fiction for the rest of the year, and during our many readings there was fierce debate. How could we be so certain of this or that?

What did we mean by saying that capitalism and democracy were inexorably in their death-throes? Wasn¹t the reverse really the case, as everyone else was saying, that the Net meant that capitalism could go into turbo-drive and that democracy was heading for a renaissance? Slightly more than a year has passed since then, but a lot has happened, the death of the dot.coms has hit stock markets all over the world, hundreds of millions of pounds have vanished in one of the most dramatic upheavals in modern economic history, and we believe that developments have proved us completely right.

For everyone who read carefully what we had written, it was clear that the analysis that so many people had so energetically dismissed was correct on the most crucial points. The Net is important. The Net is changing everything. And what the dot.com crash shows, as clearly as possible, is that the old capitalists basically do not understand the new economic and social logic that is developing on the Net. As a result, it is almost self-evident that the old capitalists will not manage to cling on to power once the new circumstances have broken through completely. A new, global dominant class has entered the arena: the Netocracy. And because the old, capitalist production apparatus has become redundant as a result, there will also be a new underclass; instead of the old proletariat, a new consumtariat is developing. The breakthrough of digital interactivity as the dominant medium of communication is a paradigm shift, which entails, in turn, a shift in power of the same extent and significance as when the bourgeoisie took over from the feudal aristocracy with the breakthrough of industrialism.

However, the most shattering events since the Swedish publication of this book are, of course, the terror attacks on the World Trade Center in New York and the Pentagon in Washington DC on september 11, 2001, and their effects on politics, culture, trade, stock markets and virtually everything else. And even though the scale of destruction and the extent of the consequences might be mindblowing, the escalation of this sort of blind violence, without any kind of concrete political purpose, should come as no surprise to attentive readers of Netocracy. This is, sadly, the shape of things to come, as we, with in hindsight prophetic precision, argue in chapters ten and eleven. We had better get used to the fact that an informationalist society is an environment where a small but tightknit network, strictly driven by attentionalist principles, can easily even get the world¹s biggest nation-state, with almost unlimited financial means, down on its knees. Already in the near future, September 11, 2001 may very well be considered the historical date when informationalism formally overtook capitalism as the dominant paradigm of the world. Or at least when it proved it eventually will.

The world now circles around identity. Groups of people who feel, rightly or wrongly, that the effects of globalisation work against them and render their traditions and their whole lives meaningless, will increasingly use the means most effective in the age of electronic, interactive media to make their voices heard, and more effective than anything else is the spectacular act of terror. Don’t look for any ideology, don’t look for a coherent logic; remember that the WTC high-jackers were very well educated and very much at home on the Net. These guys even booked their plane tickets on-line. They possessed the necessary financial means, but more importantly, the necessary networking skills, to make their plans work. So this is certainly not a matter of who is and who is not hooked up on the Net, and it is certainly not a matter of rich and poor; it is a matter of gaining or losing power under changing circumstances, brought on by a major transformation in our socio-ecological system, a transformation driven by evolving technology more than anything else.

These conflicts are very real, even though they may appear confusing and full of paradoxes. Contrary to a popular misconception, society becomes very much less transparent, rather than more so, as a result of these changes. A steady pattern will be difficult to fixate as new trends confront ever more violent countertrends. It will most likely not be a pretty picture.

Another area of conflict arising from the book has been the crisis of democracy. We have been accused of being cynical, of lacking a democratic disposition when we argue that the crisis is fatal and that the Net is going to deal the death-blow rather than act as any kind of knight in shining armour. But again: everything suggested by developments is proving us right. All graphs illustrating voter participation in elections and engagement in party politics show a relentless downward trend. According to press reports, for example, more British people phoned up to vote in the final of the TV docu-soap Survivor than bothered to vote in the latest European election. This is nothing that can be remedied with fancy phrases, the circumstances under which democracy was the answer to the question of how best to construct a political decision-making process will not resurrected simply because we want them to.

In no way does this make us defeatists of determinists, as some critics have claimed. Of course social developments can be influenced, but only within a material framework, anything else is muddled wishful-thinking. And the possibilities of influencing the development of society will be dramatically improved if you have a relatively objective and well-thought-out understanding of the nature and history of this framework.

Other writers, such as Manuel Castels in his multi-volume work The Information Age, have tried to encapsulate the new paradigm, but they have nearly all been trapped in the thought patterns of the old paradigm and have therefore been unable to contribute noticeably to an increase in understanding. Whereas Castels lists masses of new statistics and tries to interpret all his figures within the framework of traditional humanist sciences and an obsolete view of politics, we try instead to write and think from within the revolutionary changes that are blowing like a whirlwind around us. We are neither right nor left, we have no political agenda. We are not for or against any particular changes, we merely seek to understand and explain. How and why? Because clarity of vision is preferable to self-deception.

These questions are global. With this translation, the English-speaking world can finally interact with our analysis. The conversation continues, the number of participants is growing. We are no longer quite as frustrated as we were.

Stockholm, November 2001

Alexander Bard & Jan Söderqvist