The Network Economy: A Fungal Model for Oakland’s Economic Resilience

By Cordell Hayes of Oaxxanda & Ahava Celestial Order

In nature, fungi operate as some of the most efficient systems of interconnected networks, with mycelium stretching beneath forests, connecting plants, trees, and soil in a vast underground web. This fungal network acts as a symbiotic mediator, redistributing resources to those in need while sustaining the ecosystem as a whole. As a cooperative leader in Oakland, I see a direct parallel between how fungi thrive and how Oakland’s economy could operate more equitably and effectively through a network economy. By emulating this natural model, we can address the systemic issues plaguing the city’s seven districts while fostering an inclusive, resilient economy that uplifts all of its residents.

Thinking like a fungus, the network economy emphasizes the interconnectedness of businesses, resources, and people, much like how fungal mycelium connects different plants and trees in a forest to distribute nutrients and support the ecosystem. In Oakland, fostering a network economy could amplify local resilience, drive innovation, and create new revenue streams. Here’s how it can be expanded:

Business Incubators and Innovation Hubs

Concept: Oakland can establish multiple innovation hubs across the city, tailored to different industries (e.g., tech, arts, agriculture, and sustainability). These hubs would act like “mycelium centers,” creating environments where local entrepreneurs, creatives, and startups can collaborate, share ideas, and exchange resources.

Why It Works: Like fungi distributing nutrients, hubs encourage resource-sharing, knowledge transfer, and collaboration. A strong local ecosystem benefits from each component growing together, much like the fungal network.

Action Steps:
Public-Private Partnerships: Collaborate with universities, tech firms, and investors to fund innovation hubs. Encourage shared space models, where small businesses pay reduced rents in exchange for community collaboration.
Programs: Offer accelerator programs to nurture small businesses, providing mentorship, networking opportunities, and funding access.
Co-Working Spaces: Support affordable co-working spaces and communal labs where people from different sectors can collaborate, fostering cross-industry innovations.

Example: A tech hub for AI-driven green solutions could partner with local urban farms to develop IoT-based precision agriculture, solving both sustainability and food security issues.

Cooperative Business Models

Concept: Foster cooperative businesses and support mutual aid networks across Oakland. Cooperatives can operate in various industries (retail, tech, food, housing), where the workers or local residents share ownership and decision-making powers, much like how fungal networks share nutrients with surrounding plants.

Why It Works: Cooperative models create wealth redistribution, financial stability, and community ownership. Instead of profits going to external shareholders, they are reinvested in the local economy and workers.

Action Steps:
Education and Advocacy: The city can educate citizens about cooperative business models and provide incentives for cooperative startups. Partner with existing co-ops like Oaxxanda to act as role models.
Funding and Incentives: Offer seed funding, tax breaks, and grants specifically for cooperative businesses. This could be combined with training in financial literacy, cooperative governance, and business management.
Platform Cooperatives: Encourage the creation of digital platforms owned by workers and users (e.g., ride-sharing or delivery services) that can compete with larger gig-economy companies but keep profits within Oakland.

Example: A grocery co-op owned by local farmers, grocers, and community members can circulate profits within the city while providing healthy, affordable food options.

Cross-Sectoral Collaborations

Concept: Like a mycelial network connecting different trees and plants, Oakland can foster partnerships between industries that traditionally don’t work together. Tech companies can partner with artists, urban farmers with scientists, and sustainability groups with public health experts. This cross-sectoral approach can spawn unique, innovative businesses.

Why It Works: Synergistic collaborations across sectors lead to greater innovation and economic diversity, allowing industries to cross-pollinate ideas and solutions.

Action Steps:
City-Sponsored Initiatives: The city can sponsor innovation challenges where companies from different sectors team up to solve urban challenges like waste management, food security, or housing affordability.
Innovation Festivals and Conferences: Host events where entrepreneurs, artists, scientists, and technologists can come together, pitch ideas, and network. Create grant opportunities for the best cross-sector collaborations.
Hybrid Businesses: Encourage hybrid business models that incorporate both technological advancement and social impact (e.g., social enterprises that use technology to solve homelessness or education gaps).

Example: A collaboration between tech developers and artists could result in a new augmented reality (AR) platform that tells the cultural history of Oakland through immersive experiences, creating both tech jobs and tourism revenue.

Local Supply Chains and Circular Economy

Concept: Build local supply chains and circular economy models that keep resources circulating within Oakland. Much like fungi break down and recycle organic material in ecosystems, Oakland businesses can adopt practices that reduce waste and optimize resource use.

Why It Works: A circular economy reduces dependency on external goods, keeps money circulating locally, and fosters sustainability. Businesses that rely on local suppliers strengthen community bonds and create a more resilient economy.

Action Steps:
Local Procurement Policies: Encourage or mandate that large businesses and government entities in Oakland source a percentage of their goods and services from local suppliers.
Zero-Waste and Reuse Models: Promote businesses that adopt zero-waste models, or create marketplaces for the reuse and recycling of materials. This could include everything from fashion and tech to food.
Resource Sharing Platforms: Develop platforms (digital or physical) that enable businesses to share excess resources, such as surplus food, unused office space, or even staff during low periods.

Example: Restaurants in Oakland could form a collective that purchases local produce, sharing a distribution network that reduces transportation costs and emissions. Leftover produce could be shared with food banks or converted into compost for local farms.

Digital and Physical Infrastructure

Concept: The city can act as the “infrastructure” that holds these networks together, facilitating connectivity through both digital and physical means. Just as fungal networks spread across vast areas underground, Oakland’s infrastructure should be designed to spread connectivity.

Why It Works: Improved infrastructure allows for faster, more efficient networking between businesses, workers, and consumers. Digital infrastructure, like high-speed internet, connects entrepreneurs with global markets, while physical infrastructure like bike lanes or public transit boosts local mobility and commerce.

Action Steps:
Broadband Expansion: Ensure that all businesses, especially those in underserved areas, have access to high-speed internet and affordable tech tools to stay competitive.
Transit-Oriented Development: Improve public transportation and bike lanes to reduce traffic congestion and increase foot traffic in business districts. Create commercial hubs along transit routes that encourage local business growth.
Urban Redevelopment: Repurpose vacant lots, underused industrial spaces, and abandoned buildings into thriving business and cultural spaces. Provide incentives to companies that commit to revitalizing these areas.

Example: A neighborhood development initiative could turn vacant buildings into coworking spaces for creatives, offering high-speed internet and communal studios, fostering collaboration across different sectors.

Community-Owned Digital Platforms

Concept: Create a community-owned digital marketplace where local businesses, artisans, and creators can sell their goods and services online. This would act like a digital version of a fungal network, connecting individuals and businesses directly without intermediaries.

Why It Works: An online marketplace keeps wealth circulating locally while providing a digital infrastructure for small businesses. It also helps diversify the economy and allows businesses to scale.

Action Steps:
Launch a Local Marketplace App: Develop an app or website that serves as an e-commerce platform for Oakland-based businesses. Encourage local consumers to buy from the platform by offering incentives such as discounts or city-sponsored promotions.
Blockchain for Local Currency: Introduce a blockchain-based local currency (or credit system) that residents can use on the platform to support local businesses and keep the value circulating within Oakland.
E-Learning and Mentorship: Offer online courses and mentorship programs to help entrepreneurs learn how to scale their businesses and build digital competencies.

Example: A community-owned platform like this could allow local artists to sell their work directly to consumers, with lower fees than large e-commerce platforms. The platform could include virtual “popup markets” that rotate different themes and goods.

Oakland’s Seven Districts: Business Types, Key Issues, and Network Economy Solutions

Now that we’ve explored the conceptual framework of the network economy, let’s apply these ideas to Oakland’s seven districts. Each district has its own unique business environment, set of challenges, and opportunities for growth. By thinking like a fungal network, we can strengthen connections between businesses, foster resource sharing, and address systemic issues.

1. District 1 (North Oakland)
Neighborhoods: Rockridge, Temescal, Piedmont Avenue, Mosswood
Business Environment: District 1 is known for its upscale retail corridors, boutique shops, artisanal cafes, and gourmet restaurants, particularly in Rockridge and Piedmont Avenue. Temescal features a vibrant arts scene with small artisan businesses, microbreweries, and galleries.
Key Issues:
Gentrification and Displacement: Rapid gentrification has led to increased housing costs, pricing out long-term residents and businesses.
Traffic and Parking: The popularity of these areas leads to traffic congestion and limited parking, impacting both residents and businesses.
Network Economy Solutions:
Cooperative Housing Models: Implement housing cooperatives and community land trusts (CLTs) to combat displacement by keeping housing affordable for low-income residents.
Business Resource Networks: Like a mycelial network, businesses in Rockridge and Temescal can pool resources, sharing access to distribution channels, storage spaces, and labor. This would lower operational costs and allow small businesses to thrive without relying on external capital or developers.
Public-Private Partnerships for Parking and Transit: Establish partnerships to create shared parking structures and improve bike lanes and public transit options, helping to reduce congestion and making the district more accessible.

2. District 2 (Downtown, Chinatown, Lake Merritt)
Neighborhoods: Chinatown, Lake Merritt, Jack London Square, Cleveland Heights
Business Environment: District 2 is a commercial hub with Downtown Oakland housing corporate offices, tech startups, co-working spaces, and nightlife venues. Chinatown is a vibrant enclave of immigrant-owned businesses, offering a range of restaurants, specialty grocery stores, and cultural shops.
Key Issues:
Homelessness: Downtown Oakland and Lake Merritt are hotspots for homelessness, with visible encampments and limited shelter resources.
Commercial Development Pressure: Rapid development is driving small businesses, especially in Chinatown and Jack London Square, to face displacement due to rising rents.
Network Economy Solutions:
Community Resource Networks: Like fungi redistributing nutrients, local businesses and nonprofits can collaborate to provide job opportunities, food, and services to the homeless population. Initiatives such as job training programs or housing-first models could be supported through business contributions and public funding.
Shared-Ownership Models for Small Businesses: Chinatown can establish cooperatively owned business spaces, where community members jointly own and operate commercial properties, preventing displacement. This would ensure long-term sustainability for small immigrant-owned businesses.
Business Incubators: Create business incubators and accelerators in Jack London Square for startups that focus on social impact, sustainability, and cultural preservation, allowing these businesses to thrive without the threat of displacement.

3. District 3 (West Oakland, Uptown)
Neighborhoods: West Oakland, Uptown, Adams Point
Business Environment: West Oakland, historically industrial, is now home to small manufacturers, artists, and community spaces. Uptown Oakland, a center of arts and culture, features galleries, music venues, restaurants, and nightclubs.
Key Issues:
Environmental Health: West Oakland suffers from severe air pollution due to its proximity to the Port of Oakland and major highways.
Crime and Public Safety: The district has higher crime rates, particularly violent crime and property theft, which negatively impacts the local business community.
Network Economy Solutions:
Green Business Networks: Like fungi that detoxify their environment, West Oakland can benefit from a network of green businesses focused on reducing pollution and improving air quality. This could include urban farms, renewable energy startups, and eco-friendly manufacturers. These businesses could create jobs while also addressing environmental health concerns.
Community Policing and Safety Networks: Businesses in Uptown and West Oakland can create local safety cooperatives, where they collaborate with law enforcement, nonprofits, and local residents to address crime and improve public safety. A shared commitment to reducing crime can strengthen community ties and improve the business environment.
Cultural Hubs: Uptown’s arts scene can become a focal point for cross-sector collaboration. By fostering partnerships between artists, tech companies, and sustainability groups, new hybrid businesses can emerge that leverage cultural innovation and technology to address environmental and social challenges.

4. District 4 (Central East Oakland)
Neighborhoods: Montclair, Laurel, Dimond, Redwood Heights
Business Environment: District 4 features a mix of upscale shopping areas (Montclair Village), small family-owned businesses (Laurel District), and essential service providers.
Key Issues:
Wildfire Risk: Montclair and other Oakland Hills neighborhoods face high risks of wildfires due to their proximity to dry, forested areas.
Affordable Housing: Rising housing prices in Montclair and Dimond are pushing out long-term, lower-income residents.
Network Economy Solutions:
Fire-Resilient Infrastructure and Cooperative Initiatives: By pooling resources through cooperative businesses, local residents and businesses can invest in fire-resistant infrastructure and prevention measures.
Local Supply Chains: Encourage businesses in District 4 to form local supply chains, sourcing goods and services from each other. This would reduce dependency on external suppliers, create stronger economic ties within the community, and keep money circulating locally.
Business Incubators for Green Initiatives: Establish innovation hubs focused on sustainability and resilience in Montclair and Dimond. These hubs can drive innovation in green tech, especially in wildfire prevention technologies and energy-efficient home retrofits.

5. District 5 (Fruitvale)
Neighborhoods: Fruitvale, Maxwell Park
Business Environment: Fruitvale is a bustling center for Latino-owned businesses, with markets, restaurants, and specialty grocery stores serving the community.
Key Issues:
Affordable Housing and Displacement: Fruitvale’s working-class population is vulnerable to rising housing costs, pushing families out of the area.
Gang-Related Crime: Crime and gang activity are persistent issues in Fruitvale, impacting the safety of residents and businesses.
Network Economy Solutions:
Cooperatively Owned Businesses: Like mycelium ensuring that resources benefit the entire ecosystem, cooperatives in Fruitvale can allow residents to share ownership of commercial spaces and markets, preserving affordable business opportunities.
Youth Employment Networks: Develop youth cooperatives that provide job training and employment in local businesses, keeping young people engaged in productive work while reducing their likelihood of becoming involved in gang activity. By supporting these efforts, businesses and the community benefit from lower crime and a stronger local workforce.

6. District 6 (East Oakland)
Neighborhoods: Millsmont, Eastmont, Havenscourt, Seminary
Business Environment: District 6 is a blend of small retailers, service providers, and light industrial businesses, though it faces high levels of unemployment and poverty.
Key Issues:
Crime and Public Safety: Crime, including violent crime and gang activity, is a major challenge.
Economic Inequality and Lack of Investment: District 6 has historically seen less investment in infrastructure, schools, and public services compared to other areas of Oakland.
Network Economy Solutions:
Cooperative Business Incubators: Establish cooperatively run business incubators that offer affordable office space, mentorship, and training for aspiring entrepreneurs. This will stimulate local business development and create jobs, reducing poverty and economic inequality.
Cross-Sector Collaborations for Public Safety: Form partnerships between businesses, nonprofits, and public safety officials to address crime. Local businesses could provide job opportunities and training programs for at-risk youth, helping to reduce the root causes of crime.

7. District 7 (Deep East Oakland)
Neighborhoods: Castlemont, Brookfield Village, Sobrante Park
Business Environment: District 7 is largely residential with family-owned businesses, small-scale retail, and auto-related services. However, the area faces significant economic challenges and lacks commercial infrastructure.
Key Issues:
Economic Inequality and Unemployment: Deep East Oakland has high levels of poverty and limited access to well-paying jobs and business opportunities.
Blight and Crime: Many neighborhoods in District 7 suffer from blight, with abandoned buildings and poor infrastructure contributing to crime and disinvestment.
Network Economy Solutions:
Youth-Led Cooperatives: Establish cooperatives focused on giving youth employment opportunities and entrepreneurial training. Youth-led businesses in fields such as agriculture, construction, or technology can combat unemployment while addressing urban blight through community-driven projects.
Circular Economy Models: Encourage businesses in District 7 to participate in circular economy practices, where they recycle materials, share resources, and create products that can be reused or repurposed. This keeps resources within the
community and reduces the need for external suppliers.

Citywide Issues and Network Economy Solutions
Affordable Housing
The network economy offers solutions to the housing crisis across Oakland by promoting:
Housing Cooperatives: Residents in all districts could benefit from cooperative housing models where tenants share ownership, ensuring long-term affordability.
Community Land Trusts (CLTs): CLTs can secure land for community use and prevent displacement by holding it in trust for future generations, allowing affordable housing developments to thrive.
Public Safety and Crime
Reducing crime through the network economy involves:
Community Policing Networks: Businesses, residents, and local law enforcement can work together in cooperatives to develop community-led public safety initiatives.
Economic Empowerment through Jobs: Creating stable, cooperative jobs in underserved communities directly addresses the root causes of crime by providing meaningful employment and economic security.
Environmental Health
In districts like West Oakland, where pollution is a pressing issue, network economy principles can:
Support Green Cooperatives: By focusing on sustainable businesses, Oakland can reduce environmental degradation while creating green jobs and improving public health.
Digital Connectivity
Expanding digital infrastructure is critical for economic growth. The city can invest in:
Community-Owned Digital Platforms: These platforms would allow local businesses to sell their products and services online, reaching new markets while keeping wealth within Oakland.

Conclusion: Building Oakland’s Future with the Network Economy
By adopting the network economy—a model that mirrors the resilience, interconnectedness, and resource-sharing behaviors of fungi—Oakland can build a stronger, more equitable economy. Each district has unique challenges, but through cooperatives, innovation hubs, local supply chains, and cross-sector collaborations, we can create an inclusive economy that works for everyone.
The future of Oakland’s economy lies in collective ownership, shared resources, and sustainable development. Emulating the natural wisdom of fungi, Oakland can grow a networked economy that addresses housing, public safety, environmental health, and unemployment—ensuring a thriving future for all its residents.

Sources:
Oakland 2020 Housing Assessment
City of Oakland Business District Data
West Oakland Environmental Indicators Project
National Cooperative Business Association: Economic Impact
This article was written from the perspective of a cooperative leader working to build resilient economies in Oakland’s neighborhoods.