Christof Koch in Scientific American:
For every inside there is an outside, and for every outside there is an inside; though they are different, they go together.
—Alan Watts, Man, Nature, and the Nature of Man, 1991
Taken literally, panpsychism is the belief that everything is “enminded.” All of it. Whether it is a brain, a tree, a rock or an electron. Everything that is physical also possesses an interior mental aspect. One is objective—accessible to everybody—and the other phenomenal—accessible only to the subject. That is the sense of the quotation by British-born Buddhist scholar Alan Watts with which I began this essay. I will defend a narrowed, more nuanced view: namely that any complex system, as defined below, has the basic attributes of mind and has a minimal amount of consciousness in the sense that it feels like something to be that system. If the system falls apart, consciousness ceases to be; it doesn't feel like anything to be a broken system. And the more complex the system, the larger the repertoire of conscious states it can experience.
My subjective experience (and yours, too, presumably), the Cartesian “I think, therefore I am,” is an undeniable certainty, one strong enough to hold the weight of philosophy. But from whence does this experience come? Materialists invoke something they call emergentism to explain how consciousness can be absent in simple nervous systems and emerge as their complexity increases. Consider the wetness of water, its ability to maintain contact with surfaces. It is a consequence of intermolecular interactions, notably hydrogen bonding among nearby water molecules. One or two molecules of H2O are not wet, but put gazillions together at the right temperature and pressure, and wetness emerges. Or see how the laws of heredity emerge from the molecular properties of DNA, RNA and proteins. By the same process, mind is supposed to arise out of sufficiently complex brains.
More here.