I know this question will sound silly to some, but suppose a group of people in a low key third world country decide to make their own commune. They work together to build up farming and industry purely based on their own need, and slowly expand to accomodate their needs.
I see a couple of issues with this:
- not all countries can do this. For example, Palestinians living in Palestine will suffer trying to do this. But most countries can, right?
- it will only benefit the tiny group of people within proximity to the commune. But the commune can 1) expand and 2) inspire communes in other locations
- some needs are hard for a small commune to make, such as computer chip manufacturing, and other things they will need to get from the non commune world
But still, I can’t see this as less than a good step forward?
I think there IS a need to compete. You have to produce more than just subsistence. Without any goods to trade, this hypothetical third world commune will have very little economic growth.
Hence the need to be competitive with other producers in the marketplace (which could be private industry). If private industry can produce the same goods far cheaper than the commune then it’s tough for that commune to make money. No/low income means there can be very little industrial build up with no funding to invest in more infrastructure, equipment or resources.
This is why I mentioned political power. Government can support that industrialization process. e.g. directly providing funds, building infrastructure, creating laws that bring foreign capital. etc.
Why is trade necessary? Is it because the commune would not be able to produce everything it needs and wants? What if it can cover all needs and good enough portion of the wants?
Correct. It’s wants would exceed what it can produce. It can trade the excess of what it produces for other goods and services.
Self sufficiency is difficult at a commune level. Just access to healthcare is a need.
We can see this already in real world. Don’t even worry about the commune aspect. A less developed country has lower access to healthcare, education, etc. To develop they have to have something valuable to trade.