Cargonomia: shrinking the distance between producers and consumers 

Planet Local, which highlights examples of localization in action all over the planet, is a project of Economics of Happiness/Local Futures/The International Alliance for Localization. In March thumbnail sketches of three ethical local banks were published here.

The local food movement is about growing food and also shrinking the distance between producers and consumers — and a new initiative in Hungary is doing just that.

In Budapest, an organic vegetable farm, a do-it-yourself bicycle cooperative and a self-managed bike delivery company teamed up to create Cargonomia, an urban food distribution hub which uses locally-manufactured cargo bikes to deliver locally-grown food across the entire city. And the project continues to grow: Two local bakeries have joined Cargonomia which now delivers bread across the city as well as vegetables.

Read more about this one-of-a-kind collaboration here. Within the team of partners, there is expertise in designing and constructing different types of cargo bikes and trailers.

It’s a business model which utilises each partner’s strengths: vegetable deliveries from Zsamboki Biokert are coordinated by Kantaa’s distribution experts and made using Cyclonomia’s bikes. In this way, Cargonomia goes beyond ‘local food’ to encompass the entire local economy. It aims to help local food producers: organic food producers, vineries, apiaries.

It hosts a community centre where local residents can borrow, rent, or buy their own cargo bikes, organise or attend activities focusing on the transition to a local-scale economy and events to connect with other social and environmental initiatives in the city.

Localise West Midlands is a member of IAL, a cross-cultural network of thinkers, activists and NGOs from 58 different countries.

 

 

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Localising moves in four Eastern European countries

The Romanian parliament has passed a law requiring large retailers with a turnover of 2m euros to allocate a minimum of 51% of existing space for fresh produce to products sourced locally, from a short supply chain.

The law, which came into effect last month, initially stated that products should come only from Romania but had to be amended after Brussels warned that this would be a breach of EU regulation. Under the amended text, Bulgarian and Hungarian products would also qualify as part of a short supply chain.

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French retailer Carrefour has founded an agricultural co-operative in a Romanian village to bring local fresh produce to its shelves. It includes 80 families of producers who own 60 hectares of agricultural land. Carrefour will source 5,000 tonnes of fruit and veg from the local co-op in the village of Varasti.

Through the co-op, which officially launches this month, farmers will be able to scale up production and have a single collection centre. The partnership with Carrefour guarantees them a production plan and price, and means they will receive fast payments for their products.

RetailEU described the legislation as protectionist but added that Romania is not the only country concerned about its local manufacturers; Slovakia  wanted to force supermarkets to inform customers at the entrance of the number of Slovakian products in the store and recently the Polish government introduced a “supermarket tax” on all major (and therefore foreign) retailers, as Hungary has already done.

 

 

 

Changing local economies to work for people who feel excluded

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A link has been received to a Guardian report about the ‘Preston model’ – for background information see Clifford Singer’s interesting article on the Next System Project’s website.

Councillor Matthew Brown, Preston city council cabinet member for social justice, inclusion and community engagement, devised this model. 12 of the city’s key employers were helped to reorganise their supply chains and identify where they could buy goods and services locally, stopping 61% of their procurement budget being spent outside the Lancashire economy. The employers included ‘anchor institutions’ such as:

  • the county constabulary,
  • a public sector housing association,
  • colleges
  • and hospitals

Since 2011, Lancashire council’s central government grant had been reduced from £30m to £18m, leading to cuts in everything from community engagement to parks and the leisure centre. “The intention was to devolve cuts and blame it on us,” Brown says. “But you can become more self-sufficient.”

The Public Services (Social Value) Act 2013 now allows public bodies in England to take into account the social, environmental and economic impact of their commissioning. A key step was to redirect lucrative contracts, such as printing services for the police and food for council buildings, towards local business and the city council doubled its procurement spending with Preston companies from 14% in 2012-13 to 28% in 2014-15.

Brown and his colleagues want to build a city where workers are in control of wealth, improving people’s sense of citizenship. “We’ve got the public pension fund to invest in student housing, we’re looking at setting up a local bank to give business loans and for the local authority to become an energy provider,” he says. “You put all that together and you can see how we are developing the infrastructure for a new economy.”

The model was inspired by cooperatively run communities in Cleveland, Ohio and the world’s largest co-operative group, Mondragón, in the Basque region of Spain, and has been cited in speeches by the shadow chancellor John McDonnell and other councils, including Birmingham, Rochdale and Sheffield have taken an interest in the initiative.

Matthew Brown has worked with the Centre for Local Economic Strategies, a Manchester-based think tank with considerable experience of working collaboratively with local authorities and other institutions to boost local economies.

CLES is  working in Birmingham with Localise West Midlands because for many years LWM has made the case for more inclusive, ‘locally grown’ economies – see its ground-breaking report, Mainstreaming Community Economic Development. The focus is on those ‘anchor institutions’ which have a major impact on the city.  As part of a separate initiative, LWM is working with the New Economics Foundation, CLES and New Start. They have brought together a group of local practitioners from the region which has suggested a focus on health and social care. Read on here.

Brown believes that as a result of the financial crisis and its aftermath people are ready to hear a radically different way of thinking about politics and that Corbyn can win a Labour party victory in 2020. Until then, Preston is backing the northern powerhouse initiative to secure devolution, allowing it to build what Brown believes are the foundations of a new economy away from the City and Westminster.

“The days of getting huge inward investments are over, so the sensible way is looking at how you can do that through your local area to make something new,” he says. “This is it.”

 

 

 

Localisation/swadeshi: a programme for long-term survival

 

Swadeshi has been described by Satish Kumar, founder and Director of Schumacher College in Devon as a programme for long term survival.

It is the principle of preferring the neighbouring to the remote.

It relates to need-based lives, ruling out unlimited consumption.

It is not autarky; but a needs-based global alternative.

Economic swadeshi was shaped by Gandhi, who advocated the production and use of indigenous food and goods. In 1956, the Khadi and Village Industries Commission was established in by Act of Parliament.

 

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Active today, a list of its SMEs may be read here. 

 

Swadeshi practices economics according to its original definition of good household management, seeking to preserve natural wealth and promote the balanced development of all regions and society as a whole.

It regards the market as an instrument, not as master; the swadeshi global view is “let a thousand markets bloom – and not merge into one global market”.

 

 

 

Corbyn focusses on decentralisation: localising energy and transport

corbyn-eee-manifestoJeremy Corbyn has launched an environmental manifesto that outlines plans for the UK to achieve 65% of energy from renewable sources by 2030 – without fracking.

Corbyn proposes to put cities, councils, devolved governments and communities at the heart of an efficient, decentralised energy system by promoting a shift to electric and hydrogen buses and cars; a network of low-emission zones and cycling with safe cycle lanes and hire schemes in every town and city.

The manifesto places social enterprises, including not-for-profits and co-ops at the heart of Corbyn’s plans for a “publicly run, locally accountable energy system”.

A “publicly run, locally accountable energy system”.

In a speech in Nottingham, the Labour leader said, “We want Britain to be the world’s leading producer of renewable technology. To achieve this, we will accelerate the transition to a low-carbon economy, and drive the expansion of the green industries and jobs of the future, using our National Investment Bank to invest in public and community-owned renewable energy. This will deliver clean energy and curb energy bill rises for households; an energy policy for the 60 million, not the Big 6 energy companies.”

He has promised to promote over a thousand local energy companies in the next parliament and legislate to give community energy co-operatives the right to sell energy directly to the communities they serve.

Housing

It would launch a National Home Insulation plan to insulate at least 4 million homes and phase out coal-fired power by 2025. The Labour leader estimates over 300,000 jobs would be created in the renewables sector as a result of these measures.

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Labour would reinstate the department for energy and climate change in its first month of going back into government, as part of its plan to rebuild and transform Britain, “so that no-one and no community is left behind,” he said at the event in Nottingham.

Jeremy Corbyn also encourages the British public to take action as individuals to help to meet the Paris climate agreement. He proposes to use the precautionary principle to protect the environment and people from harm – not a pay-to-pollute approach allowing the richest corporations and individuals to wreck our planet.

 

 

 

America: six big shifts towards an economy that distributes economic benefits widely and minimizes damage to the environment

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sarah van gelderSarah van Gelder (right) is co-founder and executive editor of YES! Magazine which feature powerful ideas and practical actions towards a more just and sustainable world. She has co-founded a cohousing community, organized tenants and built a produce cooperative, providing local, sustainably grown whole foods, at affordable prices, to residents who want local, sustainable food sourced within walking distance of their homes.

Sarah points out that, in America as in Britain, corporations and the wealthy are recovering well after the collapse of the global economy in 2008. This is confirmed by Nomi Prins, (left, a senior fellow at America’s Demos) who has worked as a managing director at Goldman-Sachs, a Senior Managing Director at Bear Stearns and senior strategist at Lehman Brothers.

nomi prinsShe records that corporate profits have jumped back to near-historical highs, and banks are hoarding an extra $1 trillion in reserve at the Fed. However, Ms Prins points out that over 90% of the population have “an overhang of debt, stagnant wages and inferior jobs, all exacerbating income inequality”.

Sarah asserts that many people are losing patience with the corporate economy—and turning to initiatives that build a new economy. Grassroots groups, local entrepreneurs and broad-based coalitions are building the foundations of an economy that distributes economic benefits widely and minimizes damage to the environment. She lists six big shifts (the links are very well worth following):

  1. Local food, once a tiny niche market, has gone mainstream. The growing, processing, and marketing of local foods is booming in many areas, including the eastern U.S., abandoned neighborhoods in Detroit, Michigan and towns and cities throughout the country. Via farmers markets and direct purchases from growers, the food travels quickly from farm to table, keeping it fresh and nutritious. Local food isn’t always greener, but a local diet does reduce emissions from food transportation, support local jobs, and connect people to their neighbors and local environment.
  1. More workers own their jobs. Worker-owned co-ops have been spreading, particularly since the recession. While they, like all businesses, can struggle, they also can help keep good jobs stable and keep money in the community. In the Bronx in New York City, the 2,300 employees who work at Cooperative Home Health Care Associates get better pay, more job security, and more training for career advancement than their counterparts at competing firms. In Chicago, workers at a manufacturing plant who were laid off when the plant was shut down bought out the factory and now operate it as New Era Window and Doors. The most famous example of worker ownership, however, is in the Basque region of Spain, which has more than 70,000 worker-owners in more than 200 enterprises. Labor unions and community activists in the United States are beginning to emulate the success of Spain’s Mondragon Cooperatives, especially in hard-hit rust belt regions.

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  1. The economy goes DIY. Making, DIY, and sharing culture: ethic of reuse and no waste, a bias for local and small-scale, and a preference for generosity is blossoming. Young people especially are building tiny houses and writing open source software. Online platforms like Couchsurfing let people share their homes with travelers. Others have started “pay-it-forward” restaurants where you pay not for your own meal, but for the person behind you in the line.
  1. Money grows more responsible. Campaigners in 22 states aim to open government-owned banks at the state, county or municipal level to finance local economies and keep profits nearby. The latest trend, in light of the threat of climate disruption, is to divest from holdings in coal, oil, and gas companies. To date, more than 800 global investors have pledged to divest over $50 billion. Redirecting assets from big corporations and Wall Street to sustainable local enterprises is providing investment capital needed to fuel the new economy.
  1. clt berkshiresSome homes stay affordable. A small percentage of people are living in community land trust homes – affordable by design – and foreclosure rates were one-tenth of the national level. This success is causing cities and advocates for the poor elsewhere to look at this as a model of permanently affordable housing. Keeping basic necessities, like our homes, out of the speculative market helps stabilize the economy and averts the disruption and impoverishment that results from predatory real estate and lending practices.
  1. Innovation emerges to protect our resources. The new economy draws on the wealth of common assets, including fresh water, the Internet, green spaces in our cities, and the storehouse of knowledge we inherit from previous generations.

It does so in a way that neither depletes them nor excludes others. That means protecting water quality, keeping the Internet open, protecting the stability of the climate, and ensuring access to a good education—for ourselves and for those not yet born.

The new economy is being built on grassroots-led, pragmatic actions that people around the U.S. and around the world are taking to create widely shared, sustainable prosperity.

Read Sarah’s article here: http://www.yesmagazine.org/new-economy/six-ways-the-us-is-building-a-people-powered-economy

 

Syriza MPs help to promote the social economy by donating 10-20% of their wage

anca voinea co-opIn a Co-operative News article, Anca Voinea notes that  Syriza has highlighted the importance of reviving the co-op movement, seeing it as a distinct economic model that would be part of their movement for a broader social and solidarity economy.

Syriza had shown interest in the movement over the last two years and is preparing for new legislation to support co-operative principles, promote co-operative education, transfer of companies to the workers and establish co-operatives of similar standards to those in Latin America and France.

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When incoming prime minister Alexis Tsipras (above) presented his agenda to parliament, he made a commitment to growing the social economy, including co-ops. Syriza has now launched a public consultation to gather opinions about the promotion of the social economy.

VioMe in Thessaloniki went bankrupt and the workers, who had not been paid for over a year, occupied the building to prevent the owner from taking away the machinery and products in stock. The factory is now in public administration and the workers are fighting a legal battle for ownership of the enterprise. They are also calling for a change in the legal framework to allow workers to take over enterprises. Mr Tsipras promised to support this effort with legal reforms. He has also spoken about the importance of co-operative banks as a vehicle for development.

Reading about this venture reminded the writer about an Argentinian workers’ initiative recorded here.

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An online platform, Solidarity4all, first mooted by the late Tony Benn, showcases different examples of informal co-operation, from social pharmacies to grocery stores or free lessons, including newly formed co-ops. Syriza has helped the Solidarity4All initiative, with each MP donating 10-20% of their wage to promote the social economy. People have taken matters into their own hands through grassroots activism and local collective action. The many and varied social solidarity initiatives include social pharmacies, social medical clinics, social kitchens, social groceries, Okmarkets without middlemen, a social collective of mental health professionals, social solidarity drop in centres, time banks (sharing skills and time), olive oil producers sharing olive oil, the ‘potato movement’ where farmers trade direct with consumers cutting out the supermarkets. Read more about Solidarity4All here.

Co-operatives: raising and developing the weakest part of our local communities and civil society?

The roots of the co-operative movement in Italy go back to 19th century workers’ associations, with credit services, agricultural and building co-ops forming an important part of the overall economy. There are more than 20, 000 cooperatives, including housing and banking movements, with over 3 million members.

In 2011 Jeffrey Hollander asserted that the success of worker cooperative models in Italy and Spain presents US & UK with a compelling model for building a new, sustainable economy: 

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An alternative to the “throw-away culture created by the powers that control the economic and financial policies of the globalized world”

Reuters reports that Pope Francis, speaking to members of the Confederation of Italian Co-operatives, condemned economic systems that “suffocate hope” and a globalised culture that treated its employees as disposable. New models and methods are needed that offer an alternative to the “throw-away culture created by the powers that control the economic and financial policies of the globalized world.”

He adds:

“Co-operatives should continue to be the motor that raises and develops the weakest part of our local communities and civil society”

The Pope said that the establishment of more co-operatives could help to solve crises of unemployment among young people and offer women jobs with a work-life balance that enabled them to care for their families.

Finally he called for money to be ‘at the service of life, managed in the right way by real co-operatives where capital does not command men but men command capital.

Preston: building a new local economics

new start logoNew Start magazine, which champions urban regeneration that is inclusive, sustainable and socially just, has reported on the work of CLES (Centre for Local Economic Strategies) with Preston City Council. Innovative Quinton councillor John Clancy, who has been to Preston to meet councillors there at a CLES conference, has already tweeted the New Start article.

CLES is exploring how anchor institutions based in the city can bring benefits for the local economy and community.

Anchor institutions are those that – once established – tend not to move location, anchoring the local economy. They may be not-for-personal profit social enterprises, co-operatives, employee-owned and run companies,  or simply local firms with a determined loyalty to their community and workforce ‘family’ (some 2nd generation) – like Professional Polishing in 2007, which refused a highly profitable offshoring opportunity for this reason – resigning from BCC because of their promotion of these policies – and has gone from strength to strength.

cles logoThe starting point was ‘procurement spend’ – seeking to create a collective vision across institutions for undertaking procurement in a way which benefits the local economy. The supply chains of each of the anchor institutions (worth £750m pa) were analysed by CLES in order to identify particular sectors where there are gaps in expenditure in the local economy and where there is scope to influence that ‘spend’ in the future.

There were two broad objectives:

  • to analyse the extent to which anchor institutions already spend with suppliers based in the Preston and Lancashire economies and whether there is potential to repatriate some of that spend;
  • to identify whether there are any particular services used by anchor institutions which would lend themselves to future delivery by local worker-led co-operatives.

Analysing the procurement spend of six anchor institutions with their top 300 suppliers – some £750m – the research found that only 5% of their collective spend was with Preston organisations and 39% was spent with organisations based in Lancashire. £488m was effectively leaking out of Lancashire each year.

Preston skyline
Preston skyline

The findings of the supply chain analysis have prompted anchor institutions to ensure procurement spending reaps greater local economic and community reward. Local organisation Community Gateway, for instance, now asks suppliers to show the local economic multiplier effect of the delivery of its capital and maintenance projects.

Preston Council has identified local organisations in those sectors which could bid for and deliver those services in the future.

Lancashire Council has reframed its procurement practices so that there is greater emphasis on economic and social value.

Postscript: other initiatives

  • Living Wage – Preston City Council has been a Living Wage employer since 2009. It seeks to ensure other organisations across the public, commercial and social economies pay their own employees. The principle of the activity links to community wealth in that it seeks to provide a fair level of pay for Preston residents and also ensure the circulation of income within the local economy.
  • Move your Money – Preston City Council has become part of the Move your Money campaign. This seeks to encourage communities to bank in a more ethical way. The Council has also helped establish a new credit union (‘Guildmoney).

• Guild co-operative network – the council and its Social Forum supports worker led co-operatives and encourages other anchor institutions to utilise local co-operatives, most of which are engaged in front line provision.

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Community energy: co-operative, citizen-centred, decentralised

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Although a couple of weeks ago the government agreed to ban all fracking in protected areas, they are now reported as saying this may ‘unduly constrain the industry’ and fracking will be allowed to take place under National Parks and other protected areas if the wells start outside their boundaries. The passing of the government’s bill was welcomed by Ken Cronin, the chief executive of trade body, UK Onshore Oil and Gas. MP Caroline Lucas, on the other hand, said:What a mockery this is making of legitimate public concerns on fracking, and indeed of the democratic process.”

On 27th January, the government’s Community Energy Strategy report praised the way “communities are coming together to take more control of the energy they use”.

balcombe residents

There are a growing number of community energy organisations in the UK, giving communities more control over production and provision and opportunities to alleviate fuel poverty and increase local employment.

Co-operatives UK, Community Energy England, The Co-operative Energy, Social Enterprise UK, 10:10 and Regen SW have united to call for fair treatment for energy co-ops: a sensible approach to share capital and an optional asset lock for co-ops. They have produced a briefing setting out the main actions required to get community energy back on track. Click here to read the briefing in full.

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REPOWERBalcombe is the latest initiative: a pro-community and pro-renewables co-operative social enterprise run for the good of the local community. Recognising that Cuadrilla’s drilling back in 2013 divided opinion in the community, they aspire to move on and unite around something positive – clean energy.

In 2015 they aim to raise funds for around 300kw of solar PV, the equivalent of 10% of Balcombe’s current electricity usage – or enough to power 60 of the village’s 760 homes. REPOWERBalcombe will sell investment in the form of shares to the community.

grange farm balcombe solar69 panels were installed on Grange Farm at the end of January

Their first site to sign up was the third-generation family-run Grange Farm on Crawley Down, who will host 18kW of solar panels on their cowshed in exchange for 33% discounted energy for the next 25 years. Local co-op members provided £27,300 for these panels. They are now raising funds to install solar panels on the rooftops of three schools.

As the briefing says:

“The UK needs to move from an economy based on fossil fuels, towards one based on renewable energy; from a market dominated by a handful of suppliers, to one where thousands of communities meet their energy needs locally.

“We need an approach to ownership and innovation that is more co-operative, citizen-centred and decentralised. One that enables people to work together to generate, distribute and supply their own sustainable energy. One that taps the emergence of new crowdfunding mechanisms that have the ability to leverage large sums of money into clean energy investment, and at the same time bolster energy-democracy and the social economy.”

Models for doing this already exist across Europe, where co-operatives and social enterprises deliver clean, low-carbon energy, offer local employment opportunities, community development funds and fuel poverty alleviation.

Useful links:

http://www.theguardian.com/environment/shale-gas

http://www.thenews.coop/93323/news/co-operatives/getting-the-uks-community-energy-sector-back-on-track/

http://www.repowerbalcombe.com/

http://www.bbc.co.uk/news/uk-england-sussex-31027128

http://www.energyshare.com/pages/8304/