CONSUMER MUTUAL AID: ADAPTATION OR CHALLENGE?

LESLAW A. PAGA

Observation of the behavior of the Polish society between 1980-85 raises the question whether changes in this behavior are simply an example of better adaptation to a long-term crisis, or whether it is more an overcoming of this crisis by a better organization of consumers. The fact of consumers undertaking mutual aid in a broad sense, along with self-organization in the field of distribution of goods and services, suggests the hypothesis that there is a slow process of easing or avoiding the consequences of the crisis by an aware middle class. This is true of only one part of the society. The upper class and the social elite overcome the crisis either through surplus funds or the "privileges of the system." Groups living below the "social minimum", although they have the greatest needs, seem to be organized for survival in a quite different way. Consumer mutual aid of the middle classes is in some ways quite different from its counterpart in the societies of Western Europe or North America.

The principle that each member of society has a legal opportunity for free development is understood here in a specific way. Systemic principles in a centrally-planned economy reject private ownership as a basic economic law, and accept the superiority of public property--"public" meaning either state or cooperative ownership. The principle of the superiority of state property limits the free choice of employment or hiring and the choice of the mode of economic property. A further consequence of this principle is that such a definition of the laws regulating economic activity implies a concessive, or government approved, system of social organization.

Furthermore, the fact that the whole economy is regulated centrally, which is usually characterized by direct administrative interference, makes the situation worse for consumers. Shortages are endemic in this system of management. This was excellently described by J. Ko rnai,¹ who also defined the basic manner of the allocation of goods: non-market allocation is predominant, sometimes occurring together with market allocation and with a "grey" or "black" market. Only in the reformed Hungarian management has market allocation comes to the fore. In an economy in crisis, which for centrally-planned economy means an increasing shortage of goods and services, there is, according to J. Kor nai, the following relationship: "The more intensive the regular shortages, the more decisive the role of administrative rationing or rationing by the supplier, or the greater queuing of buyers or users."²

On the other hand, it is worth attending to other elements which show the "differentia specifica" of the consumer situation in this system. This includes legal status in protecting consumer rights and the function of institutions created for this purpose or to regulate consumer movement.

When we compare consumer rights in industrialized countries, e.g. the Consumer Protection Programme accepted in 1975 by the Council of Ministers of the European Economic Community, to the condition of consumer legal protection in Pol and, even in the sphere of legislation Poland fares badly. This situation results from the principle that most services are provided or are within an administrative legal framework, while only some are within a civil legal framework of agreements. In the first case, as described by E. Let owska, the consumer is treated like an "administrative subject," i.e., as a suppliant, either subordinated to an enterprise which renders services to him or to a firm which produces goods. In the second case, that of a civil/legal framework, the situation is usually that of a symmetrical relationship between subjects which, in practice, means also subordination of consumers. A typical example is the legislation regarding the state railways--as the transporter--in relation to passengers.

Thus the legal status of the consumer is actually very low, although Article 4 of the Polish Constitution stresses the satisfaction of citizens' needs. This is impossible without radical changes in the legal status of the consumer in Poland, i.e., the introduction of a law concerning consumer protection or the long awaited anti-monopoly law. In spite of the above, many institutions are intended, among other aims, to protect the consumers. A long list of these institutions, starting with the Parliament, the Chief Board of Supervision [NIK], the Ministry of Internal Trade and Services, and the State Health Inspectorate, may suggest that the consumer lobby in Poland is exceptionally powerful. But a closer look reveals that the Parliament, which should take care of the legal status of the consumer, often passes bills which only consolidate its present status; the NIK reports concern consumer affairs, but their existence does not change the situation. It would be strange to treat the Ministry of Internal Trade and Services, which is responsible for monopolization of trade and for the whole problem caused by state control of staple goods, as the institution which actually protects the consumer. Such institutions, whatever their official aim, do not improve the consumer's situation.

The consumer movement in Po land, with the help of the powerful trade union, "Solidar ity," began in 1981. However, the circumstances at that time were very bad. The economic crisis at the end of the '70s manifested itself in a very acute form, and the fact that many active consumers were engaged in trade union activities did not help its development. From the very beginning "Solidarity" allowed itself to get involved in interventionist actions, instead of undertaking actions towards changing the legal system, strongly opposing monopolization of the economy, and aiding the consumers in legal conflicts with state producers. The subsequent political events consolidated such a state of affairs, making the three existing consumer organizations weak and unattractive for the society--the largest of them having only a few thousand members.

Discussing the specificity of the consumer situation in Poland as a whole, we must remember that all the elements analyzed, i.e., legal status and institutional or organizational protection, even if they were able to function in a limited way during the period of economic growth, became practically useless in the crisis situation of shortages of consumer goods. In the situation of unsatisfiable demand and progressive inflation, the monopolistic state producer gained a very privileged position in which practically all of his products found several buyers waiting to purchase. The main indicators of this situation were the number of people in queues and the time necessary for buying an article or a service.

The open crisis intensified all the negative symptoms; at the same time, a new phenomenon spread in society as a form of defense mechanism. Economic and sociological literature has many detailed analyses of the behavior of a society endangered by war or economic crises. The "grey" or "black" market, state regulation or staple goods and inflation are not atypical phenomena specific only to the Polish society. Furthermore, history shows economic crises resulting in more serious social consequences than in the case of Poland. However, some aspects of social conduct evolving during the crisis deserve analysis because of the overlapping of, on the one hand, a crisis in a centrally-planned economy and, on the other hand, social adaptation to a new situation and the creation of new social ties independent of the official economic system.

Three new elements are particularly striking: the organization of the queue society, the interpersonal dimension of goods, and the organization of mutual-aid groups.

Some elements of the organization of a queue society can be analyzed, while others may yet surprise us. The queue society in Poland did not appear suddenly. It was the reaction of the society to increasing shortages of goods and services. Queues became longer in the mid '70s. To some extent they caused the appearance of egalitarian control demands in 1980. Queues are a constant element of social life and occur for almost all goods and services, beginning with such staple goods as meat, through clothes, detergents and medicine, to durable goods as furniture, washing machines and cars. Four aspects of such a system of distribution deserve further analysis.

The first is the organization of the queues themselves in the '80s through the development of "queue committees" during the period of subjectivization of the society. Their aim was to improve organization and shorten the time spent in queues. A new element deserving analysis is that these queue committees tried not only to control members of a given queue by registering their time of arrival and stating their position in the queue, but also, and what is more important, to stop the state stores from limiting the quantity of goods and their distribution. This aroused determined resistance from store management and staff, resulting in the Ministry of Internal Trade and Services depriving the spontaneous queue committees of the possibility of controlling distribution. Although in the end the consumers did not manage to get the forms of distribution and supply under control, nevertheless their pressure had the benefit of a considerable decrease of illegal transactions in the stores.

Second, the exchange of information about a commodity in demand increased and strengthened social ties among existing neighborhood or worker groups. It also stimulated the creation of new groups, which may be called mutual aid groups and which will be discussed later.

Third, a revival of direct ties between urban and rural societies was connected with the functioning of an informal food market and of food distribution outside official structures. This is connected also with the formation of the "grey" or "black" market for goods in demand.

Fourth is the appearance of groups of persons who, having a great deal of spare time, buy or reserve places in a queue as "standers" for other persons on condition of payment. This causes redistribution of income between persons who can offer their free time and those who pay for this time. Of special interest is the rise of a new criterion of job attractiveness, i.e., whether this new occupation opens the way to leaving a previous job so as to have time to seek merchandise or services. A position which offers such "mobility" can be more attractive than a better paying job without it.

Although the organization of the queue society brings us closer to the conscious consumers mutual aid, the second aspect of the crisis situation--the interpersonal dimension of goods, indirectly strengthens ties in certain consumer mutual-aid groups. In the industrial countries the consumer faces a problem of choice among many commodities, produced by various firms, having various parameters of utility and a wide range of prices. In a centrally-planned economy, however, especially during the crisis, the priority is simply to be able to purchase an article in demand. For the consumer in the USA who has the choice between 752 models of cars and trucks, plus the choice of various colors, or who can see 2500 different kinds of bulbs in a shop in Manhattan, satisfaction from having bought a bulb necessary to illuminate one's house may seem quite unreal. Yet if this bulb, or any other commodity in great demand at a given moment, were to be bought for the consumer by another consumer, it would assume, in addition, an interpersonal dimension.

These mutual services, as well as the distribution of purchased goods among the members of an informal mutual-aid group, strengthen ties and mutual interdependence. It is a first step towards the voluntary organization of consumers into various mutual-aid groups. It is very difficult to present in a graphic form all these relations and to define in which group certain consumers may be classified. She/he belongs at the same time to many such groups, formed variously by family, neighbors, friends and co-workers. These groups are of a fairly stable character for the market situation forces the consumers to belong to them for longer than merely one exchange. New groups are linked to existing ones based on the constant exchange of services and other forms of aid, for example the relationship between a car owner and a mechanic servicing his car. This is not a relationship of the "regular customer" type, but a new type consisting of the exchange of information and services. Information about a commodity or the possibility of its purchase attains here an economic value and can be exchanged for another commodity or service. The general impoverishment of society, together with a very stiff and bureaucratized banking system offering credits only for restricted purposes, creates the need for loans within one's own group and thus contributes to their stabilization.

To summarize the discussion so far, mutual-aid groups, coming into being in this way, make up to some extent for some of the most glaring faults in the existing formal structure of the society. They also influence that structure. So we may hazard stating that here we have to do with a new social structure, a "network" coming into being. By using the term "network", popularized among others by John Naisbitt in his book Megatrends, we intend to suggest that this phenomenon is similar to the one occurring in the USA, although caused by factors and an economic situation which is absolutely different. That is why, when we quote Naisbitt's definition of a network, it turns out that the phenomena described by us fit into it. When asked what a "network" is J. Nai sbitt answers: "Simply speaking the network is formed by people who talk to one another, they divide ideas, information and resources of information, changing the society, increasing productivity, improving working conditions and distribution of resources".² Before we try to evaluate to what extent new structures created by mutual aid groups fit into world megatrends, it is necessary to look at the formal mutual-aid groups sponsored mainly by the Roman Catholic Church .

The deepening economic and social crisis in Pol and, together with the State's withdrawal from protective functions and with the lack of other institutions and organizations (help from the Polish Red Cross and the Polish Committee for Social Aid is insufficient), created a situation threatening the biological existence of many families. With the constant increase of families living beneath the poverty level and the spread of poverty, the Church, which traditionally aids the poor, was prompted to undertake action along with some union activists. The specific position of the Church was strengthened by the distribution of food and clothes aid offered by Western Europe and its Churches. "Solidarity for the Family," which came into being in 1981, had the goal of strengthening family and neighborly ties. The imposition of martial law and the de-legalization of "Solidarity" broke the barrier of isolation surrounding many families, and stimulated action towards bringing aid to the most needy. These actions had to be within the framework of the Church because of the political situation. The few secular initiatives such as "Family Alliance" in Warsaw or "Family Mutual Aid" in Lublin are obviously not mass movements. They are, however, pertinent in that they bring a new element into our analysis, i.e., formal organizations for mutual aid which are of a higher level than the informal mutual aid groups analyzed previously.

These actions have still another interesting aspect. Informal networks formed by the middle classes included mainly people who had something to offer to the others. In contrast, the groups sponsored by the Ch urch, which very often comprised people engaged in the distribution of material aid, created a chance for many people who had been badly organized till then to join this movement. In many cases it was possible to turn from the distribution of foreign gifts to the higher level of self-organization, i.e., mutual-aid, even when there were few, or no, gifts to distribute.

These actions cannot be classified solely as an adaptation to the crisis, they are the consumer's response to the economic crisis. Obviously at this time it is impossible to answer explicitly the question as to whether all these groups, formal and informal, will develop into credit unions, or whether they will create new associations providing aid for their members. In the situation of a constant decrease of living standards for most of the population and when the middle class begins to feel the consequences of the long-term economic crisis, it is impossible to answer such questions as to whether these groups will continue to develop or, on the contrary, whether their members will try to deal with the crisis on their own. The answers to these questions are directly connected with the still more important problem of whether, in the present situation in Poland, we are dealing with a specific manifestation of world megatrends, or only with a form of self-defense against a crisis which will become unnecessary once the crisis is over or eventually lessens.

This problem is crucial for the future of the society and we shall try to judge the phenomenon using the criteria applied by J. Nais bitt in his evaluation of the American situation:

Mutual aid has always been a part of American life. In the seventies the idea of mutual aid once again became a movement which penetrated institutional, disciplinary, regional and ideological divisions. Mutual aid can take numerous forms, i.e. creating groups to fight against crime, for the strengthening of neighborhood ties, distributing of surplus food to the aged --food which otherwise would have been wasted--the rebuilding of homes without government aid or at least with local control over the aid. In health care, self-help manifests itself in the responsibility for healthy habits, environment and life-style, while demanding that doctors treat their patients--with their body, brain and emotions--as a whole. Inspired by the idea of mutual aid, people are demanding the control over the mysteries of life and death, resulting in the trend towards natural births and giving birth to their children at home. Mutual aid also finds expression in growing resourcefulness in the rejecting of employment in large corporations to establish one's own business or employment in a small company. In education there is the growing engagement of parents, who question public education and send their children to private schools or, more radically, educate them at home.³

When we join the characteristics of mutual aid movements producing new social structures and the situation of the Polish consumer, it appears that all attempts to compare them are utopian, for the mode of life and living standards are quite different. But when we analyze particular elements it turns out that many aspects of the situation are comparable, although distinctive situations and causes must be taken into account.

The major problem is that of local ties, especially among the inhabitants of new housing estates which are cooperative in name only. Aid groups based on the parish structure of the Chu rch have a chance of overcoming isolation. Naturally there is a long way to go from the formation of such groups to the control of local authorities, but the beginning has already been made. Protection of the old people has currently become a question of life or death, because old-age and disability pensions are very low. The question is all the more crucial when we take into account the present demographic trends because Polish society is becoming older and older. The same is true of the low efficiency of the educational system. The state monopoly in this field is very difficult to overcome, although there are some signals showing different ways of organizing this sphere of social life, e.g., private kindergartens. An alternative conception is a very well developed system of private lessons, which serve mainly the purpose of giving the University, or other high school, candidates equal chances during entrance examinations. Nevertheless their expansion might contribute to the improvement of the general level of education in the society. The most critical situation appears to be the medical care system which suffers from a chronic shortage of personnel, hospitals and medication. But private medical practices, although only the well-off can afford them, show that changes are possible.

If all these intentions are to be realized, the society must be more active. It may seem difficult when we consider the limitations imposed by the system, but it may prove very attractive for the more active and resourceful members of the society who, rather "involuntarily," transferred into private business. In this sphere there are two groups of obstacles: the first is connected with the social awareness of the instability of the private sector in the so-called socialist system, and with the preference of the state sector resulting from this awareness. More consumers are active in the "grey" market, e.g., within the "trade fair tourism", or they run their own production in state factories. This obstacle is also caused by controls imposed on the private sector, especially in the cities, where it is difficult to keep up with the constantly changing regulations.

The obstacles belonging to the second group are strictly economic in character and relate to the lack of the necessary capital for establishing one's own private business. The income obtained from work in the state sector does not facilitate saving the necessary money whereas, as already pointed out, the bank system, in its present form, favors mainly the state and the cooperative sectors. The private sector in rural Po land is served by the so-called Cooperative Banks. The only factor which allows optimism in overcoming financial difficulties is that mutual-aid groups, although sometimes unconsciously, have already started to grant loans to their members for purchasing durable goods. If it were possible to start the process of accumulating capital in this way, this sector could soon be considerably strengthened. The next optimistic sign is the analysis of the behavior of the people who failed in their first independent ventures as private businessmen. They usually try again in another sphere of the private sector with only some of them returning to the sector managed by the state.

The assumption that private enterprise becomes more important during a crisis is confirmed by the fact that more and more private shops and workshops are being registered. They are mainly small ventures, but their share in market production is increasing in spite of the state authority's various attempts at administrative control of this sphere.

To sum up our observations to this point, there are new elements in the Polish social behavior caused by the politica1 and economic crisis, as well as by changes in consciousness, especially that of the younger generation. These lead us to accept the thesis that we are confronted with a situation which would be inadequately defined merely as an adaptation to new conditions of social life; it is something more which may be called a grassroots' reform. Although we cannot be sure that these processes are directly forming a new social structure, which runs horizontally rather than vertically, phenomena have already occurred which can be defined as changes in behavior and in social structure.

The Catholic University of Lublin

Lublin, Poland

1. J. Ko rnai, Niedobór w gospodarce (Economics of Shortage), (Warszawa, 1985).

2. Ibid., p. 575.

3. J. Na isbitt, Megatrends (New York: Warner, 1982).