Abstract: This essay reviews Leopold Kohr’s book The Breakdown of Nations and asks which organizational principles a global 3rd millennium society should be governed by. While Kohr suggest the organization around political parties grouped around cultural territories, the author suggests an organization in communities around the instincts of work and survival paired with the concept of bioregions and made scalable by appropriate blockchain technology.
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Leopold Kohr was the originator of the concept of “the human scale”, an idea later popularized by his friend E.F. Schumacher, notably in the best-selling book Small is Beautiful. Born near Salzburg in 1909, Kohr was an economist by profession, holding academic positions at many universities.
As the physicists of our time have tried to elaborate an integrated single theory, capable of explaining not only some but all phenomena of the physical universe, so I have tried on a different plane to develop a single theory through which not only some but all phenomena of the social universe can be reduced to a common denominator. The result is a new and unified political philosophy centering in the theory of size. It suggests that there seems only one cause behind all forms of social misery: bigness. [p.22]
In “The Breakdown of Nations” Leopold Kohr shows that, throughout history, people who have lived in small states are happier, more peaceful, more creative and more prosperous. He argues that virtually all our political and social problems would be greatly diminished if the world’s major countries were to dissolve back into the small states from which they sprang. Rather than making ever-larger political unions, in the mistaken belief that this will bring peace and security, we should minimize the aggregation of power by returning to a patchwork of small, relatively powerless states, where leaders are accessible and responsive to the people.
Thus, the greater the aggregation, the more dwarfish becomes man. But this is not all, for along with the decline of a person’s share in sovereignty goes a decline in his share in government. [p. 118]
The political scientist Kohr does not argue for a return to exploitative feudalism, petty kingdoms or pre-Neolithic hunter-gatherer tribes. Instead he separates the economic realm from the political one and envisions a global economic system paired with local political units.
Would it not be truly reactionary to erect again the countless barriers separating countless regions from each other, impeding traffic and trade, and undoing the gigantic economic progress which the existence of large-area states and the resultant big-plant and mass-production facilities have made possible? If union has sense anywhere, it certainly has in the economic sphere considering that without it our living standards would in all likelihood still be at the low level that characterized the Middle Ages. [p. 143]
Kohr concludes his socio-economical deliberations by suggesting a union through division and quotes Henry C. Simons: These monsters of nationalism and mercantilism must be dismantled. It is interesting that Kohr’s political-administrative model of a global society echoes the ideas of visionary paleontologist Pierre Teilhard de Chardin, who wrote about the concept of a noosphere, i.e. a global spiritual sphere, which unites the multitude of human entities on planet Earth. When I missed solid economic thinking in Chardin’s writing, I do miss the spiritual and natural scientific perspective in Kohr’s work. They make though a great complimentary reading.
Summarizing, we may thus say that even economics refuses to yield arguments against a small-state world. For, even in the field of economics, the only problem of significance seems to be the problem of excessive size, suggesting as its solution not growth, no union, but division. We have found that high living standards in large states seem a macro-economic illusion while they appear to be a micro-economic reality in mature small ones. We have found that, as the size of the productive unit grows, its productivity ultimately begins to decline until, instead of giving off energy, it puts on fat. We have found that the reason for this is the law of diminishing productivity which puts limits to the size of everything. [p. 174]
The author continues to describe the ideal form of administration and paves the road for what is the central pillar of the post-modern management paradigm: teamwork. Considering that Leopold Kohr published The Breakdown of Nations in 1957, when the orange modern management paradigm of big business, large corporations and rigid top-down hierarchies was probably at its climax, we can understand why he was named one of the most original political thinkers of the 20th century.
Thus, wherever we look in the political universe, we find that successful social organisms, be they empires, federations, states, counties, or cities, have in all their diversity of language, custom, tradition, and system, one, and only one, common feature – the small-cell pattern. Permeating everything, it is applied and reapplied in unending processes of division and sub-division. The fascinating secret of a well-functioning social organism seems thus to lie not in its overall unity but in its structure, maintained in health by the life-preserving mechanism of division operating through myriads of cell-splittings and rejuvenations taking place under the smooth skin of an apparently unchanging body. Wherever, because of age or bad design, this rejuvenating process of subdivision gives way to the calcifying process of cell unification, the cells, now growing behind the protection of their hardened frames beyond their divinely allotted limits, begin, as in cancer, to develop those hostile, arrogant great-power complexes which cannot be brought to an end until the infested organism is either devoured, or a forceful operation succeeds in restoring the small-cell pattern. [p. 191]
It is probably in this paragraph that Kohr and Chardin move closest to each other. The economist and political scientist Kohr draws on a biological metaphor and describes large political entities with the osmotic model as calcified organisms which have developed political cancer. Chardin interprets increasing complexity as the axis of evolution of matter into a geosphere, a biosphere, and finally into consciousness and then to supreme consciousness (the Omega Point). He explains that evolution shifted from the realm of physics into chemistry from chemistry into biology, and from biology into culture. He describes the omega point, i.e. the breakdown of nations in Kohr’s or singularity in Ray Kurzweil’s terminology, as a final destination of consciousness evolution and explains the turmoil in the physical world thereby.
The great powers, those monsters of nationalism, must be broken up and replaced by small states; for as perhaps even our diplomats will eventually be able to understand, only small states are wise, modest and, above all, weak enough, to accept an authority higher than their own.
While Kohr is not outspoken what higher authority small state governments will accept – it could be both the authority of the democratic body of small state citizens or a transcendental entity, it becomes rather clear that his vision is very much aligned with Chardin’s. Two thinkers who have started in their own academic field, far apart from each other, recognize human power concentration as the central problem in social evolution. One draws on osmotic modelling and develops a theory of a decentralized organization, the other provides a metaphysical explanation for why creation moves through culture into organizations of increased complexity.
The Breakdown of Nations – Can it be done?
Division of great powers is essential. Question is not: Can it be done, but how can it be done? Division by war. Division by proportional representation. Federalization of great powers. Prevention of reunification of small states. Can the great powers be divided? Will Soviet Russia and the United States accept their dissolution merely to save the United Nations? Will France, Italy, Great Britain, or Germany ever give their consent to their own liquidation merely because this would be wise? [p. 193]
When I read Kohr the first time in 2013, Frederick Laloux had not yet published Reinventing Organizations. Without doubt, both Leopold Kohr and Peter Drucker have influenced Laloux deeply, and I am inclined to see a scholarly heritage trickling down from Kohr’s political theory into Drucker’s management philosophy and further down into Laloux’s Teal organization paradigm of self-management.
It is striking that both authors conclude their writing with the dissolution of organizations. Laloux predicts the possibility of corporate organizational evolution to a stage where even Teal organizations dissolve into a global network of a liquid work force. Kohr envisions the dissolution of political entities, which are by all means the largest human organizations existing. He offers two avenues to liquidate political organizations: war and division through proportional representation.
But war is fortunately not the only means by which great powers can be divided. Engulfed in a swamp of infantile emotionalism and attaching phenomenal value to the fact that they are big and mighty, they cannot be persuaded to execute their own dissolution. But, being infantile and emotional, they can be tricked into it. While they would reject their division, if it were presented to them as a demand, they might be quite willing to accept it, if offered to them in the guise of a gift. This gift would be: proportional representation in the bodies governing the federal union of which they form part. The acceptance of this offer would cause nothing less than their eventual disappearance. [p. 194]
It is at this point that Kohr’s brilliant analysis turns into a vision which at least back in the 1950s had no possibility of becoming reality. Kohr knew this and titles chapter eleven: But will it be done? And preempts the answer to his question in self-irony with a brief: no. Chapter eleven consists of this single word. He goes though in chapters ten and twelve at great length to discuss how a federation of states could look like in Europe or the US, a federation which consists of small states which emerge along cultural borders instead of national interests. He portrays Switzerland as a successful federation which has succeeded to break the large language blocks into small cantons which in turn champion direct democracy and connectedness between political representatives and citizens.
The provincial delegates from Normandy, Picardy, or Pau would no longer meet in Paris but in a new federal capital city that may develop in Strasbourg or elsewhere. Being the capital of a larger are than France, they would meet there the delegates from the other federally dissolved regions of the union. While there might still be a lingering of traditional unity amongst the groups of French-, German-, Italian-, or English-speaking delegates at the beginning, the groundswell of regional particularism and individualistic difference would soon break down the last vestiges of the present great-power blocks. […] With the transfer of the basic state powers from the nation to the district, the districts would automatically become the true sovereign members of the European federation. [p. 197, 198]
Leopold Kohr’s vision, as ingenious it might have looked in 1957 after the horrors of WWI and WWII and in the outlook of the US becoming a gigantic Empire, lacks the perspective of a social psychologist and thus like Karl Marx’s concept on wealth re-distribution sufficient grounding in the mechanics of human nature. The last chapter also makes clear that Kohr’s focus on political organization did blind him to the transformation of labor markets which other contemporaries have observed.
The model Switzerland has proofed itself successful by all means of economic measurement, but it has done so to a large extent by hosting a significant number of MNC which exploit natural and human resources. It is also highly questionable if the small-scale administrative organization of Swiss cantons has alienated the population less from their ecosystems than in other countries. A simple survey would most likely confirm that the average Swiss person does not know more about its natural environment than an American citizen. This assumption is to be explained with the transformation of labor markets and the resulting breakdown of communities.
Full review on mingong.org