Whilst there has always been a tendency for self-serving affiliations to exist between business and state (as exemplified by such phenomena as ‘crony capitalism’, ‘corporate welfare’ and ‘regulatory capture’), that tendency has over the last 40 years or so become the norm - most notably in the US where corporate lobbying power seems to have completely subverted the democratic decision-making process.
‘The self-reinforcing quality of corporate lobbying has increasingly come to overwhelm every other potentially countervailing force.’ – How Corporate Lobbyists Conquered American Democracy By Lee Drutman, April 2015
Despite widespread grassroots opposition, that anti-democratic norm, or standard, may yet become institutionalised internationally in the form of the corporate-dominated Transatlantic Trade and Investment Partnership, currently being negotiated, whereby the rights of corporations would take precedence over the sovereignty of the participating nation states.
‘TTIP is not really about trade, but about expanding the power of multinationals at the expense of people and the environment. It’s about putting trade and corporate privilege ahead of public services and public protection.’ – Greenpeace
Fundamentally however and in the absence of such power being enshrined in law, corporate political power is only possible by virtue of the standard top down management business model - a few people at the top controlling the corporation’s human and financial resources.
Corporate political power derives from the corporation’s ability to create wealth which in turn derives, at least in part, from the combined efforts of those who perform the various functions necessary for a business to succeed, such as research and development, production, marketing, accounting, human resources and risk management.
Blockchain technology, used effectively, has the potential to decentralise the process of wealth creation and democractise financial power worldwide.
The DeBuNe network will be comprised of individuals or teams of 2 or more people who perform specific business functions. Each business unit is highly specialized. Everything outside of their expertise can be left for other business units.
In DeBuNe a business unit is not controlled or overseen by an executive board as is typically the case with most incorporated businesses. Instead it is able to work in a decentralized environment through the platform's collaborative and trustless tools. Anyone can independently create a new business unit, be it a single person or a small team. Either way they will be in collaboration with other business units in the network.
A group of business units acts, in effect, like a division of a corporation, but instead of being permanent they are brought together on a temporary basis to meet the needs of a specific project. A business unit requests certain work to be carried out by another business unit, and that business unit might itself bring in one or more additional business units in order to complete the job. None of the business units involved might be aware how many other business units are working on the project - in a decentralized environment no one necessarily has the complete picture.
The way in which such business units work is very much like businesses do in a market economy. They use other businesses to fulfill the needs they cannot themselves fill, such as marketing or accounting. Often they then sell their product or service to other businesses, and only those at the end of the production chain sell it to the end consumer. Thus a free market economy is a system formed by individual actors or businesses, who collaborate and compete with each other in a decentralized environment. A market economy is a spontaneous, chaotic, and self-organizing system – just like DeBuNe.
Such a collaborative platform increases the competitive advantage of individual businesses and lowers the barriers to entry. This will lead to decentralized business becoming more widespread and help businesses to compete even against multinational corporations. Most corporations try to do the precise opposite: create barriers to entry and restrict competition. It is a well studied and used business strategy.
Who then would not like to restrict their competition? The answer is: every business would. However, there are two fundamentally different ways to do it: 1) naturally through building a brand, for example; and 2) through government intervention. The latter case is called crony capitalism where businesses lobby in respect of new laws & regulations, taxes & tax benefits, and so on. This is going on at both the national and international levels. At the international level multinational corporations have successfully dictated international law and regulations by so called ‘free trade agreements’.
The problem with the current market economy then is, that through this abuse of commercial power, some big businesses have acquired an unfair edge over the smaller ones, thereby stifling innovation and wealth creation in the real economy. Rigging the market in favour of the big players has created a bad image for free market capitalism and made people to look for solutions in the wrong places.
If you want to understand in more detail how DeBuNe works please read their white paper.