International Alliance for Localization: Local Futures

In the Times, Ed Conway, economics editor of Sky News, describes problems arising from the complexity of globalisation, ‘the hallmark of 21st-century life’ and the International Alliance for Localization records examples of new modes of development and progress. He concludes: “Globalisation, once a means of boosting everyone’s income, has instead evolved into an excellent vehicle to help the rich get richer”.

The International Alliance for Localization sees that the building of more resilient economies will require a rethinking of the financial system, and its Planet Local series has been turning the spotlight on some inspiring examples of ethical banking:

* In Maine, USA, a local resident with money to invest  is providing nearby small farmers with loans whose interest is paid exclusively in the form of farm products.

* Brazil’s Banco Palmas, governed and managed by residents of the impoverished Palmeiras neighborhood in the city of Fortaleza, has issued a local currency, dramatically shifted spending patterns to keep money circulating locally, and extended basic financial services to people shut out of the mainstream banking system.

* In Croatia, the democratically-owned Ebanka functions as a non-profit bank, in stark contrast to most financial institutions worldwide. Their loans are given without interest, and every member has an equal voice when it comes to voting on big decisions, regardless of the value of their deposit.?

Visit IAL’s growing library of localization initiatives

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

 

 

 

 

A regenerative ‘Circular Economy’ includes more localisation of economic activity

The Circular Economy is advocated to replace and address the social and environmental damage done by the current ‘Linear Economy’ with its ‘take, make, dispose’ model, depleting finite reserves to create products that end up in landfill or in incinerators. It achieves its objectives through long-lasting design, maintenance, repair, reuse, remanufacturing, refurbishing, and recycling – reducing waste to zero. Some examples of such practice are presented on the website of the World Economic Forum.

The idea of circular material flows as a model for the economy was presented in 1966 by an economist, Professor Kenneth Boulding, in his paper The Economics of the Coming Spaceship Earth.

In the 70s, Walter R. Stahel, architect, economist and a founding father of industrial sustainability, worked on developing a “closed loop” approach to production processes. He co-founded the Product-Life Institute in Geneva; its main goals are product-life extension, long-life goods, reconditioning activities, waste prevention, advocating “more localisation of economic activity”.

With Genevieve Reday, he outlined the vision of an economy in loops (or circular economy) and its impact on job creation, economic competitiveness, resource savings, and waste prevention. Their Hannah Reekman research report to the European Commission, “The Potential for Substituting Manpower for Energy” (1976) was published in 1982 as a book (left) Jobs for Tomorrow: The Potential for Substituting Manpower for Energy. 

The Waste & Resources Action Programme (WRAP) a charity, which receives funding from the Department for Environment, Food and Rural Affairs, the Northern Ireland Executive, Zero Waste Scotland, the Welsh Government and the European Union was set up in 2000.  From its headquarters in Banbury it works with businesses, individuals and communities to achieve a circular economy through helping them to reduce waste, develop sustainable products and use resources in an efficient way. Below: the header for its March report:

On 17 December 2012, the European Commission published a document entitled Manifesto for a Resource Efficient Europe. This manifesto clearly stated that “In a world with growing pressures on resources and the environment, the EU has no choice but to go for the transition to a resource-efficient and ultimately regenerative circular economy” and outlined potential pathways to a circular economy, in innovation and investment, regulation, tackling harmful subsidies, increasing opportunities for new business models, and setting clear targets.

‘Resource’, the first large scale event for the circular economy was held In March 2014 and Walter Stahel joined the programme of 100 business leaders and experts. Many major stakeholders and visitors from across the globe attended. An annual large scale event is now increasing the uptake of circular economy principles. Circular Economy Examples may be seen on the website of the World Economic Forum and there are indications that some multinational companies may be cherry-picking related ideas which cut costs and increase profits.

Some will have reservations about the involvement of McKinsey & Company, which has issued two reports on the subject – one commissioned by the Ellen MacArthur Foundation.

Peter Day explored the work of the Ellen MacArthur Foundation and its associates on radio (In Business) on 23rd April 2015 – listen again here.

Ellen established this independent charity in 2010 and eloquently outlines the economic opportunity of a circular economy, giving the concept wide exposure and appeal.

 

 

 

ppppppppppppppppppppppp

Event: launch of post Brexit & Trump report commissioned by MEP

The Brexit vote and the election of Trump have been hailed as marking the reversal of the long trend towards increased globalisation.

These changes possibly also mark the end of neoliberalism as the dominant ideology of our times. For opponents of what globalisation and neoliberalism have meant in practice these developments might be seen as welcome. Yet at the same time Brexit and Trump seem highly problematic for anyone concerned with social justice and ecological sustainability.

green house header

A new report by Green House authors Victor Anderson and Rupert Read, commissioned by MEP Molly Scott Cato will be launched on Tuesday 28 March from 14.00 – 16.30 at Europe House in central London.

The report considers the impact of the UK’s withdrawal from the EU on trading practices and the opportunity to move to a less globalised and more localised economy. It emphasises that there are many different versions of Brexit, and aims to put a green version firmly on the political agenda.

Note: Panel discussion with Nick Dearden (Global Justice Now) and Helena Norberg-Hodge (Local Futures and International Alliance for Localisation of which Localise West Midlands is a member). Helena’s contribution will be by pre-recorded video due to prior commitments.

 

Register and get full details here.

 

 

 

Economic Prospects for 2017: Andrew Simms – New Economics Foundation

nef-logo             

As John Nightingale who sent the link says, this ‘reads well’: 

Each year the Financial Times conducts a survey of leading economists on the UK’s upcoming prospects. The New Weather Institute is part of that survey and predicts a bumpy ride. A lot of the FT material sits behind a paywall, so for interest here are the answers we gave to their questions (which are themselves interesting in terms of locating mainstream concerns) on issues ranging from economic growth, to Brexit, monetary and fiscal policy, inflation, immigration and, unavoidably, Donald Trump.

Highlights (full text on WM New Economics Group website):

It is time to stop measuring the health of the economy using orthodox economic growth measured by fluctuations in GDP as the primary indicator. By mistaking quantity for quality of economic activity, worse than telling us nothing it can be actively misleading. It tells us nothing about the quality of employment, the intelligence of infrastructure, the economy’s resilience, the environment’s health, or the life satisfaction of the population. As the United Nations Development Programme pointed out (as far back as 1996), you may have growth, but it might be variously jobless, voiceless (denying rights), ruthless (associated with high inequality), rootless (culturally dislocating in the way that fed Brexit, for example) or futureless (as now, based on unsustainable resource use) . . .

. . . tax breaks, subsidies and the way investment portfolios get managed means that money flows cheaply in fossil fuel infrastructure and operations. At the same time, necessary and successful emergent sectors like solar and other renewables can still struggle for affordable, patient capital. The privatisation and weakening of the mission of the Green Investment Bank is deeply concerning in this regard . . . prevalent economic uncertainties seem to be having the effect of putting everyone, the MPC included, on ‘watch’, and unlikely to do anything radically different in the ‘phony war’ period of approaching Brexit negotiations . . .

If anything, far from being downgraded by the Brexit debate, the economic importance of immigration to key UK sectors has been made more acutely obvious, ranging from higher education, to food, retail and a range of other service industries. Importantly, many of the drivers of population movement from inequality to conflict and environmental degradation show no sign of lessening and, if anything, growing worse.  The tone and promise of government policy seems mostly to affect the degree of xenophobia experienced by immigrants rather than significantly changing their numbers. With all these things in mind, I doubt trends in immigration will change much in 2017 and that this will buoy-up a UK economy facing a wide range of threats . . .

There is no reason in principle why QE cannot be used in a more intelligent and focused way. The UK is weighed-down with an aging, creaking, high-carbon infrastructure. The case for public investment as necessary to rebuild the foundations for a modern, clean and efficient economy to underpin our quality of life is overwhelming. The cost of money for conventional borrowing is cheap. And the decision by the Bank of England to expand its quantitative easing (QE) programme from £375 billion to £445 billion in the wake of Brexit, demonstrates that public money creation is also possible when the situation demands it. Up to date, QE has benefited the banks, and the holders of certain assets, with broader economic benefits being questionable. But, as Mark Carney has previously indicated, there is no reason in principle why it cannot be used in a more intelligent and focused way to aid the productive, low carbon economy. I and others have consistently argued that far more good could be done if the same basic mechanism was used, for example, to capitalise a much larger and more ambitious green investment bank via bond purchases. The work subsequently undertaken such as large scale energy efficiency retrofitting of the UK housing stock and the roll out of renewable energy would generate good quality local employment and better prepare Britain for the future. There is no sign yet that the government intend to seize this opportunity and rather too many signs that any borrowing that is undertaken will not be put to as good use . . .

Combined with the sentiments unleashed by Brexit, and the UK government’s active new embrace of industrial strategy, it is possible that the economic pendulum may swing back some degrees from globalisation toward localisation. Done in a purely autarchic way this might be negative. Done with respect to international cooperation and obligations, and to help build a more environmentally sustainable economy, it could snatch success from the jaws of chaotic self-destruction.

http://network.neweconomyorganisers.org/conversations/11898 Did you know… Adding your events to the NEON calendar will automatically promote them to our 1414 membersadd your events here.

 

 

 

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.

 

kvic-header

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.

corbyn-eee-graphic

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.

 

 

 

News from the Combined Authority AGM

The West Midlands Combined Authority intended to hold its inaugural AGM last Friday, 10 June, but a little local difficulty in the House of Commons meant that the legislation hadn’t been completed in time.  They went ahead with the planned business, intending to ratify it once the powers had been vested in them.

The meeting was held in Hall 4 at the ICC, around a huge table to accommodate the council leaders, chief execs, LEP and others.  There had been very little publicity for the event, but there were a number of interested people in the public seats.

Much of the agenda was formal acceptance of constitutional matters – the agenda and papers are here:

https://westmidlandscombinedauthority.org.uk/committee-papers/west-midlands-combined-authority-board/

Cllr Bob Sleigh from Solihull was elected chair and Cllr Pete Lowe from Dudley was vice-chair.

The reports pack does include the governance structure at p37, which is worth a look as it indicates the areas of future work. The portfolios were not allocated though: this was deferred/delayed to an unspecified future date.

There was an intervention from David Jamieson, the Police and Crime Commissioner about the powers of the mayor and the potential for the WMCA to veto the mayor’s decisions.  He felt he couldn’t support the transfer of police powers to the mayor on that basis.

The Strategic Economic Plan was not available in advance: despite being launched before the meeting, it was not handed out until the relevant item was reached on the agenda.  The online version is quite hard to find but this is the link:

https://westmidlandscombinedauthority.org.uk/about/strategic-economic-plan/

Some of the diagrams do require a measure of caution – see Ravi Subramanian’s take on one of them:

The idea was repeated that this was part of a nest or set of SEPs which incorporates the three LEP SEPs.  The versions shown for this were the 2014 ones, so no formal updating has yet taken place.

Martin Reeves, the “Head of Paid Service” and Chief Exec at Coventry CC, introducing the SEP, said that the dynamic economic impact model was the most exciting part of the strategy.

The Strategic Transport Plan was also presented – this was part of the papers circulated in advance, as above.   The chair of the transport delivery committee will be Cllr Richard Worrall from Walsall, but the decision on a vice-chair was deferred.

There were also updates from the three commissions:  Norman Lamb MP gave an interesting verbal update on the work of the Mental Health Commission.  While he did emphasise that their work was about reducing the cost of mental ill-health and addressing the impact on productivity, he talked about the West Midlands leading the way nationally and that it was not a one-off exercise but the start of a journey.  They have looked at the work of Thrive NYC, which is led by the Mayor of New York,and favour a similar concordat approach.  He also mentioned the criminal justice system and that they have identified that mental health treatment orders are not being used.  The full report from the commission will be launched in September, but there were no notes or slides from his update.

The Land Commission update really just identified that they are not under way yet.  The one which worried me was the Productivity and Skills Commission report.  Sarah Middleton, the chief executive of the Black Country Consortium, gave a brief report.  The chair of the commission would be announced shortly.  Desktop research had been done re mapping and research, and there would be a workshop on 4 July for regional and national experts to identify lines of enquiry. This would be business-led with support from the universities.    There seemed to be very little planned to involve local groups or to allow the voices of young people and seldom heard groups to be heard.  Nick Page, chief exec at Solihull MBC, seemed to be the lead on that, so organisations who feel they should be there should probably contact him.

Overall, it was difficult to tell if the less than inclusive approach was deliberate, or accidental given their timescales and resources.  We do need to keep reminding the Combined Authority that civil society expects them to make some of the effort to engage.

Karen McCarthy

Economic inequality is all our responsibility

It’s sad to hear that Equality West Midlands is going to become inactive for the foreseeable future. But I hope this decision becomes the catalyst for a greater profile for income inequality in the rest of our work. The group has only ceased its activities because its members are keen, committed activists in other groups and just ran out of time for this newer one-issue group. Like them, we share responsibility for addressing income equality through the rest of our activism.

Inequality is a major symptom of the centralised, remotely owned and parasitic economy that neoliberalism has created for us, and provenly a cause of social and environmental ills. Addressing it is a major driver of the work Localise WM does towards an economy in which we all share power and ownership. Needless to say, the so-called austerity agenda is not improving matters: rough sleeping has doubled in the UK since 2010; and debts and low, insecure incomes are leaving people vulnerable to economic shocks. The Divide Film, on general release in April, gives us an opportunity to raise the issue publicly.

Whether or not there’s an active local Equality group, we all have to remember how economic inequality affects everything we work on, and make it central to the progressive alternatives we’re proposing and a driver of political engagement – both in the West Midlands and across the UK.

Karen Leach

Dear friends,

This is probably one of the hardest emails I’ve ever had to write, but a necessary one.

Last month, the Equality West Midlands committee decided that the group should no longer be active. The main reason for this decision was due to other commitments taking up of the committee’s time and energy. It was also felt that over the course of nearly five years, the group has done all it can to promote the cause of reducing income inequality in the West Midlands region.

Equality West Midlands has had a good run: we’ve held several big events including debates and talks involving key writers on income inequality; we took part in the A41 Photography Project; we met politicians including former MP Clare Short and Birmingham City Council cabinet member John Cotton; we attended the Council’s Social Inclusion Commission meetings; members ran workshops on aspects of inequality at two Quaker conferences; we even held a picnic! Finally, over the last year, our work with Compass West Midlands has developed into the West Midlands Politics of Networks which has seen a dramatic increase in the numbers of people and organisations involved.

During that time, the public have been made aware of the problem- locally, regionally and nationally. Local media often focus on the consequences of high inequality in Birmingham, whilst there have been several TV programmes concentrating on tax havens, the lives of the poorest in our society, and the effects on health. Surveys of public opinion frequently show that inequality is rising up in people’s concerns.

With other issues in the spotlight, though, it remains to be seen whether the media, the public and politicians will continue to take the problem seriously. Nevertheless, there is still scope for campaigning work: for example, on promoting a Living Wage. If there are groups and individuals in Birmingham who would like to do work around these issues, Equality West Midlands will be more than happy to support them.

There are a number of people I’d like to thank for their contributions to the development of Equality West Midlands:

  • The staff of the Priory Rooms, a venue where EWM held so many of their meetings;
  • Richard Wilkinson, Danny Dorling, Stewart Lansley, Joy Warmington, Clare Short and Professor Karen Rowlinson for taking the time to speak to the group;
  • Councillors James Mackay and John Cotton for taking a real interest in the group’s views;
  • Karen Leach, head of Localise West Midlands, who has always supported the group;
  • Bill Kerry from The Equality Trust who’s supported the group from Day One;
  • Everybody who’s ever joined the Facebook group, followed us on Twitter, received our emails, taken a leaflet, talked to us or attended one of our events!
  • Finally, the man who had the idea to start the group, Chris Burgess, deserves thanks.

Special thanks goes to Gilly Cooper, Shaz Rahman and Barbara and David Forbes: every one of these four was at the first ever meeting of the group on June 1st 2011 and has been a constant for EWM. I am sincerely grateful for their work, support and, fundamentally, friendship.

Over the last five years, I’ve personally learnt a lot about income inequality: how it has developed; the immediate consequences; alternative ways of working that could reduce the problem. The field of income inequality can feel like an overwhelming subject because there are so many layers to it- there is no magic bullet solution, and even the smallest of improvements may require a complete overhaul of mind-sets and government policy before we can make headway.

When I first joined the group, I felt that inequality was at the roots of everything wrong with British society. Now, though, I know it is. I hope that Equality West Midlands will in the future become active once again, but in the meantime, will continue to struggle in other ways to reduce inequality- and I hope Equality West Midlands supporters will do the same.

See you down the road,

Tom Pratt (Chair)

Does Birmingham Love the Brum Pound?

News from the Birmingham Pound, thanks to a little group of dedicated people – and you can perhaps help us… We’ve been joined by two brilliant new members with real live time to commit to the project: Ridhi Kalaria and Matthew Rowe. Ridhi, founder of Ort Cafe, ran our event for Small Business Saturday which saw 90-odd percent of attendees support the idea, and has gone on to star in this excellent short video explaining the Birmingham Pound idea for our Love Brum application.

Love Brum is a membership-based funder: members put money into the pot, and then vote for their favourite projects. They like to fund things that make Birmingham a better place (an EVEN better place!) and like the Birmingham Pound, they are keen to reach all corners of the city. If you are a member, please have a look and consider voting for this! Consider joining anyway – it’s a great fundraising idea.

Matthew, previously of the Envirolution Network in Manchester, has now relocated to our much more exciting city. IbuprofenHe has produced a comprehensive and slightly mind-boggling spreadsheet of Birmingham Pound costings under different funding scenarios, which other members are now  scrutinising carefully…

Matthew and Ridhi have also produced us a Brum Pound website, Twitter profile and Facebook page, so please sign up, follow or like as is your preference!

And keep watching this space – plenty more progress to follow shortly.

Karen Leach

Joint coordinator

Localism: a rescue plan for British democracy

A notable omission from Localise West Midlands’ extensive range of articles about, or with references to localism, is a review of a book by Simon Jenkins: Big Bang Localism: a rescue plan for British democracy.

big bang localismIn this book he attributes the decline in British voter interest and participation to the over-centralisation of power in Whitehall, ‘one of the most centralised governments in the West’. As turnouts in elections are dwindling, he notes, many are turning to ad hoc pressure groups and direct action.

Centralisation has not worked well, Jenkins believes; levels of satisfaction with health care, education and policing are lower in Britain than almost anywhere in the developed world. He notes a change in public opinion which once, on the whole, believed that the British government works well and is now shifting to a belief that it needs improving, citing contemporary YouGov polls showing a rise in discontent with public services and health care

Twelve years later the need to heed Jenkins’ pre Corbyn message has never been greater as the established on the political left and right frantically attempt to discredit and unseat a democratically elected party leader.

He noted that Britain’s local councillors are outnumbered three-to-one by 60,000 unelected people serving on roughly 5,200 local quangos, managing various functions that may be local but are no longer under local democratic control. Examples include health service, housing, prisons, training and economic development.

Jenkins points out that, across Europe, countries have spent the past two decades refreshing their local democracy – even traditionally centralised countries like France have devolved. The USA operates the most decentralised system of government and in these countries, public services are delivered more locally than in Britain – and win greater public trust as a result.

He sets out a programme for a ‘democratic Big Bang’, to return power to the local level, including control over health, police and education services, to re-enfranchise the British people:

Counties and cities should run:

  • health services
  • secondary schools
  • policing
  • the prison and probation services
  • youth employment and training
  • planning.

Municipalities and parishes should run whatever gives a community its pride and visual character:

  • primary schools
  • old people’s homes
  • nurseries and day-care centres
  • clinics and surgeries
  • parks and sports centres.

Local services should mostly be funded by local taxation, which should be raised from a combination of:

  • residential property tax
  • business rates
  • local income tax.

Jenkins proposes that central government funding of local services should take the form of a block grant, determined by the Local Democracy Commissioner and paid to local authorities with no strings attached.

The “enemies of localism” are vested interests and the national media, but devolution in Scotland and Wales shows that people prefer decisions about local services to be made locally. Simon Jenkins recommends that the Big Bang should start with a “bonfire of central controls” and an end to targets and official league tables, adding “Big Bang Localism is the answer to the failure of Britain’s public services and the loss of faith in British democracy”.