"Collaborative consumption": the new economy

The networked world allows an unprecedented degree of collaboration within communities.

The rise of the sharing economy

“I feel sad for people and the queer part we play in our own disasters.”

- Don DeLillo, White Noise

White Noise revels in the excessive clutter pervading every inch of the novel. Underpinning such fascination, however, is intense anxiety about the way consumption has come to dominate and define the contemporary world, demanding high fossil fuel inputs in return for destabilising carbon emissions and excessive amounts of waste, not to mention the psychological impacts of so much "stuff". 

In 2000, worldwide private consumption expenditures (the amount spent on goods and services at a household level) topped $20trn, a four-fold increase over 1960. Short-term thinking argues that consumption is good for the global economy. However, the financial implications of ecological degradation are increasingly being recognised. A new report (pdf) written by more than 50 scientists, economists and policy experts, for example, has just announced that climate change is reducing global GDP by 1.6 per cent annually.

However, out of abundance springs an opportunity in the form of collaborative consumption, a social and economic system made possible by network technologies that moves away from the old industrial economy and enables the sharing and exchange of all kinds of assets. From Wikipedia to Airbnb, Streetbank to Whipcar, peer-to-peer activity is making waves, harnessing the power of local communities to build a more financially and ecologically sustainable future in ways and on a scale never before possible.

Marketplaces for unused goods are nothing new, as thriving car boot sales demonstrate. What’s changing is the way in which digital platforms are enhancing the efficiency of those marketplaces and facilitating sharing across them in a world where more than 2.3 billion people are now online (pdf). By connecting people in unprecedented ways, web platforms are establishing access to a huge audience for un- and underused goods and enabling people to tap into niche audiences to distribute those goods amongst. 

These peer-to-peer activities redefine traditional forms of ownership, lending and renting, establishing a strong affinity to the idea of shared access to goods and knowledge, including amongst strangers. Take car-sharing: cars are financially and ecologically expensive, both in manufacture and day-to-day use. As dense urban streets clog up and parking spaces become more expensive, it makes sense to spread those costs amongst users. The best way to coordinate that? Technology-driven peer-communities to connect suitable sharers together. 

Streetbank: a network of sharing communities

What makes such sharing possible is trust, in both the web-platform mediating the exchange and in the inevitable human interaction that such sharing entails. Far from replacing face-to-face interaction, digital technologies facilitate innovative and resource-conscious ways of bringing people together. Trust can then be built up through rating systems, instilling reputation as a key requisite to further sharing. 

Streetbank is one such collaborative consumption initiative that works to establish a broad-based network of online sharing communities in order to develop stronger, locally-rooted communities across the UK and ultimately worldwide. At its simplest, Streetbank is a website that allows you to see all the things and skills that neighbours are giving away, lending or sharing – a shared attic, garden shed, toolkit, fancy dress chest, DVD collection and skills bank all rolled into one. Its ultimate vision is a hyper-local one in which members are connected to everyone in their street, dramatically reducing consumption through sharing as a result.

From an economic perspective, it could also be argued that organisations such as Streetbank are adding to the output of the UK, if in a small and unmeasured way. GDP measures items bought rather than the use of the items/activity purchased. Take a simple example: the average drill is used for just 15 minutes in its lifetime. GDP measures the number of drills bought but in the case of a drill, this is a poor measure of a nation’s output when its usage is so low. While Government and policy makers obsess over GDP data, any serious economist should agree that an efficient economy is one in which the resources are deployed well, and where output is useful. To put it in Rachel Botsman’s terms – pioneer of the collaborative consumption movement – we need to be taking into account number of holes drilled rather than number of drills sold. 

Streetbank founder Sam Stephens argues that:

We believe that we need to replace GDP with a new way of measuring the effectiveness and efficiency of the economy – measuring useful output and activity rather than simply what is bought.

Instilling a culture of sharing into communities can take time. Botsman regards this as a steady progression from initial trust between strangers to a more widespread belief in the commons to, ultimately, critical mass. Importantly, those communities that seem to benefit most from projects such as Streetbank already have strong pre-established trust networks which are then strengthened by members doing simple but effective things, such as putting a photo on their online profile.

The need for projects like this is huge if we are to establish the rapid reduction in consumption and re-skilling of our communities as we deal with financial and environmental instability. The question is how to reach neighbourhoods where trust is less apparent and how to scale-up community-minded collaborative consumption initiatives in the process. This is the challenge that organisations such as Streetbank and fellow "coll cons" initatives are working to address, constantly testing their innovations as they go and supported by organisations such as NESTA, not to mention one another, embedding peer-to-peer learning in their progress.

So what can peer-to-peer activity bring to the twenty-first century table where the feast is rapidly diminishing and what’s left is meted out so unevenly? The answer is an economy based on collaboration rather than individual ownership, trust rather than status, adaptation rather than standardisation. The answer is a sharing economy. 

Do we really need all those hammers? Photograph: Getty Images

Tess Riley is a freelance journalist and social justice campaigner. She also works, part time, for Streetbank, and can be found on Twitter at @tess_riley

Photo: Getty Images
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The Fire Brigades Union reaffiliates to Labour - what does it mean?

Any union rejoining Labour will be welcomed by most in the party - but the impact on the party's internal politics will be smaller than you think.

The Fire Brigades Union (FBU) has voted to reaffiliate to the Labour party, in what is seen as a boost to Jeremy Corbyn. What does it mean for Labour’s internal politics?

Firstly, technically, the FBU has never affliated before as they are notionally part of the civil service - however, following the firefighters' strike in 2004, they decisively broke with Labour.

The main impact will be felt on the floor of Labour party conference. Although the FBU’s membership – at around 38,000 – is too small to have a material effect on the outcome of votes themselves, it will change the tenor of the motions put before party conference.

The FBU’s leadership is not only to the left of most unions in the Trades Union Congress (TUC), it is more inclined to bring motions relating to foreign affairs than other unions with similar politics (it is more internationalist in focus than, say, the PCS, another union that may affiliate due to Corbyn’s leadership). Motions on Israel/Palestine, the nuclear deterrent, and other issues, will find more support from FBU delegates than it has from other affiliated trade unions.

In terms of the balance of power between the affiliated unions themselves, the FBU’s re-entry into Labour politics is unlikely to be much of a gamechanger. Trade union positions, elected by trade union delegates at conference, are unlikely to be moved leftwards by the reaffiliation of the FBU. Unite, the GMB, Unison and Usdaw are all large enough to all-but-guarantee themselves a seat around the NEC. Community, a small centrist union, has already lost its place on the NEC in favour of the bakers’ union, which is more aligned to Tom Watson than Jeremy Corbyn.

Matt Wrack, the FBU’s General Secretary, will be a genuine ally to Corbyn and John McDonnell. Len McCluskey and Dave Prentis were both bounced into endorsing Corbyn by their executives and did so less than wholeheartedly. Tim Roache, the newly-elected General Secretary of the GMB, has publicly supported Corbyn but is seen as a more moderate voice at the TUC. Only Dave Ward of the Communication Workers’ Union, who lent staff and resources to both Corbyn’s campaign team and to the parliamentary staff of Corbyn and McDonnell, is truly on side.

The impact of reaffiliation may be felt more keenly in local parties. The FBU’s membership looks small in real terms compared Unite and Unison have memberships of over a million, while the GMB and Usdaw are around the half-a-million mark, but is much more impressive when you consider that there are just 48,000 firefighters in Britain. This may make them more likely to participate in internal elections than other affiliated trade unionists, just 60,000 of whom voted in the Labour leadership election in 2015. However, it is worth noting that it is statistically unlikely most firefighters are Corbynites - those that are will mostly have already joined themselves. The affiliation, while a morale boost for many in the Labour party, is unlikely to prove as significant to the direction of the party as the outcome of Unison’s general secretary election or the struggle for power at the top of Unite in 2018. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.