Friday, September 14, 2018

Project Cybersyn

Driving around with the radio tuned to KALW the other day I stumbled across a great episode of 99% Invisible on Project Cybersyn, which first aired a couple years ago. Project Cybersyn was a plan to use networked computers to connect and coordinate Chile's factories under Allende's socialist government. I had no idea. The whole scheme reminded me of the earlier Soviet plan that inspired Francis Spufford's Red Plenty.

As a believer in the virtues of market coordination, I'm pretty skeptical that Cybersyn could work under the best of circumstances, and it's clear that even frontier computer technology of the early 1970s was not remotely up to the task of coordinating an industrial economy. Regardless, in 1973 the generals, with a little help from the CIA, put the kibosh on the whole episode.

Still, you have to wonder. Once Amazon is the intermediary for all transactions between producers and consumers, will decentralized markets still play a role as a coordinating device? Or will Amazon's AI set the market-clearing prices to match orders on both sides? Red Plenty, by capitalist means?

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