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.

 

 

 

Are the region’s schools and hospitals sourcing food locally?

BBC Scotland made freedom of information requests to all 32 Scottish councils about the sourcing of food products bought last year.

Despite campaigns by the Scottish Government to buy local produce. Of the 28 authorities which responded, it was found £1.3 million was spent on chicken products from Thailand, more than £125,000 on carrots from Belgium, £125,000 on mashed potato from France and almost £12,000 on raspberries from Serbia.

scottish 2food        Read more about Scottish food here: http://www.taste-of-scotland.com/foodproducers.html

Farmers said they want to see more done by councils to source local produce and  the Scottish Greens first raised the issue of councils buying chicken from Thailand in 2013.The party’s health spokeswoman Alison Johnstone said:

“It’s disappointing that, three years on from our investigation, this remains a problem. Our economy is losing out. Government food policy remains too focused on exports rather than supporting local procurement. Councils need support so they can buy Scottish more often.”

A review of food and drink nutrition in schools is now under way. John Swinney, the education secretary, said that he wants school food to be “sourced as locally as possible” and has asked experts from Food Standards Scotland, NHS Health Scotland and Education Scotland where provision can be improved.

LWM is working with a number of partners to promote this agenda.  While the Carter Review of 2015 put obstacles in the way of localising NHS procurement, with its insistence on frameworks and catalogues, it recognised the value of locally sourced food.  County Hospital, Stafford was one of the first to gain a gold Food for Life Catering Mark, an initiative of the Soil Association recognised by NHS England.  This experience is being passed on through the West Midlands NHS Sustainability Network.

The fragmentation of the schools system means it’s less clear how many schools are following this approach, though many are growing their own salads and fruit as part of healthy eating projects.  In Smethwick, Victoria Park Academy has its own social enterprise, Ballot Street Spice, and it’s hoped they will sell their spice mixes at the Midland Met Hospital food market when it opens.  The Department for Education has recognised the Food for Life Catering Mark, and the government plan for Procurement cites it as a best practice tool.

 

 

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.

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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.

 

 

 

Doncaster leads on local sourcing

As local sourcing where appropriate is central to relocalising and strengthening regional economies, many will welcome news of a pledge made by Doncaster’s Mayor Ros Jones to ‘buy local’.

mayor ros jonesBusiness Desk reports that when Ros Jones became Mayor in 2013, the council spent more money with firms located outside of borough, but now the vast majority of work goes to local firms, supporting the local economy and helping to stimulate jobs and growth.

Mayor Jones said: “I was determined Doncaster firms could bid for suitable contracts and by understanding what is involved in the procurement process have every opportunity to win work. We have put on workshops, organised events and provided support for business owners so they understand the rules, can find available contracts and know how to prepare their tender bids. This work is certainly paying off with amount of work being won by local firms increasing by a staggering 34% in the last four years”.

Doncaster Council’s procurement team has trained about 130 businesses on how to do business with the public sector and procurement rules have been changed to include local suppliers.

Working with the Business Doncaster team, supplier engagement events have enabled firms to meet public sector buyers, while other public sector agencies in Doncaster have also been encouraged to ‘buy local’.

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Dan Fell, the innovative chief executive of Doncaster Chamber, added: “Doncaster Chamber believes that it is important for local organisations in the public and private sectors to do business with each other to generate new supply chains and keep work local where possible.  For many years the Chamber has encouraged partners to ‘Buy Doncaster’ and, as such, is delighted that Doncaster Council has such a high percentage of its good and services locally.”

Because of Mayor Ros Jones’ pledge to ‘buy local’ – and despite reduced council budgets – the amount of work awarded to firms in the borough increased by over £27m since 2013/14 and now represents 68% of all council spend. In  2016/17, Doncaster based companies are projected to win over £108m of council work.

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Endnote: see news of the Birmingham Pound which encourages sourcing of local goods and services: https://brumpound.wordpress.com/

 

 

 

The global economy undermines our most universal aspirations — clean air, clean water, a stable climate, happiness”

 

Localise West Midlands is a member of the International Alliance for Localization together with individuals, groups, NGOs, trade unions and local businesses from 58 different countries, showing the broad interest in localization worldwide. More than 70 member groups are working on issues ranging from social and environmental justice to sustainable farming, from workers’ rights to indigenous knowledge, from holistic education to policy change and beyond.

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A recent update from the International Alliance for Localization, in addition to giving news of its activities in different parts of the world, says that in line with its education for action mission, it is branching out into a new medium of communication: animation. A simple two-minute animated film summarizes the global-to-local vision in less than 5 minutes, it presents the case for a 180-degree turn from global to local, engaging those who are familiar with the message as much as newcomers.

Going Local: the solution multiplier spells out the essence of what’s wrong with the global economy and the multiple benefits of localisation.

IAL2 animationUsing whimsical drawings and narration, the film emphasizes how the global economy undermines our most universal of aspirations — clean air, clean water, a stable climate, happiness — and illustrates the key ways in which localization can turn things around. One comment: “People really seem to like it and it’s a message that will inevitably win the day — it’s just a question of when”

Anja Lyngbaek, IAL’s Associate Programs Director writes:

“The purpose of the IAL is to serve as an information- and strategy-sharing network for the many groups and individuals around the world working on a global-to-local shift, and to provide the localization movement with a clear and powerful collective voice.

“Localization is not yet widely recognized as a systemic strategy for change. The IAL is a step towards addressing this . . . Through the IAL, we share information about inspiring localization initiatives and strategies, and about campaigns to resist the corporate growth economy. Our Global-to-Local Webinar Series, free for IAL members, addresses key issues on a monthly basis, while our Planet Local series regularly showcases inspiring initiatives, many of them part of the IAL network.

“But a  multitude of localization initiatives are already underway worldwide, from local food and community-owned renewable energy projects to local businesses alliances. These initiatives are resulting in multiple benefits: lower carbon footprints; healthier food; more dignified livelihoods; closer community ties, and more”.

 

 

 

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”.

 

 

 

The FT and IFIs recognise the passing of globalisation

In a Political Concern blog, Mario Draghi, president of the European Central Bank, Christine Lagarde, managing director of the International Monetary Fund, and Donald Tusk, president of the European Council, have all decried a system they claimed had neglected the security of its weakest members.

izabella-kaminskaEarlier this month Izabella Kaminska referred to UBS’ ‘big note’ reviewing the passing of globalisation. She comments that labour costs go up in emerging markets — and as western consumers become more conscious of what constitutes fair and unfair trade — we should not really be surprised that global supply chains are shrinking, and that:

“Shipping stuff half way across the world simply doesn’t make half as much sense if the pay-off from cheap labour or favourable currency effects doesn’t compensate for the shipping costs (or increasingly, the carbon footprint either)”. The downturn in global trade was detailed on this site in July

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Longer and more complicated supply chains require a far more complex and extended route to market — including far more expenditure on transport and energy — than they would require if they were sourced more locally.

UBS notes that global value chains have become shorter as some countries have on-shored (or reshored) production because bringing production closer to home often serves end customers better and there are now higher unit labour costs in Asia. (See the work of Professor David Bailey and references on the WM Producers website).

guy-standingAnd today the FT reviews a book by Guy Standing, a professor at the University of London’s School of Oriental and African Studies: The Corruption of Capitalism.

It notes that many of the author’s ideas for fixing the system — such as a universal basic income, where all citizens receive regular payments from the state whether or not they work — are receiving more attention from the mainstream.

 

Political Concern asks:Is localisation also part of the answer?”

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Its recommendation: “Search the Localise West Midlands site – and especially see the work on Mainstreaming Community Economic Development”.

 

 

 

 

 

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.

 

 

 

Towards a localised future: the rising global-to-local movement

A New Economy Convergence

helena

This one-day meeting in London will provide an opportunity to take part in the rising global-to-local movement and to discuss the strategies required to move away from a corporate-led growth economy towards diverse local economies in service of people and planet.

There will be news of inspiring initiatives worldwide aimed at resisting global trade treaties and reclaiming our communities, cultures and natural environment. Meet others who care about democracy, social justice, fulfilling and dignified livelihoods, nutritious fresh food, meaningful education and about passing on a healthy and diverse environment to our children.

Speakers include Helena Norberg-Hodge, James Skinner, Molly Scott Cato, and Rupert Read (read more about the speakers here). The short version of The Economics of Happiness will be screened, and the event will include world café brainstorming sessions.

 

Saturday, September 17th, 2016 9.00 am to 5.00 pm

Friends House 173-177 Euston Road, London, NW1 2BJ (use Garden entrance)

View Map

Tickets: £20 for a standard ticket; £15 for concessions. Full scholarships also available upon application; please email info@localfutures.org.

Book Tickets

 

 

 

General Electric says: “We will localise”

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Last year came three reports on the downturn in global trade:

  • From the container industry: Søren Skou, chief executive of the Maersk Line, which carries goods and products between Asia, Europe, the US, Africa and Latin America and is now described as the only profitable freight line.
  • In a report from the Centre for Economic Policy Research: theslowdown in world trade has been much worse than previously reported, with global trade volumes plateauing over the past 18 months amid a rise in protectionism.

A higher proportion of the value of final goods is being added domestically

  • The World Bank: There is some evidence to suggest that part of the explanation may lie in shifts in the structure of value chains, in particular between China and the United States, with a higher proportion of the value of final goods being added domestically—that is, with less border crossing for intermediate goods. In addition, the post-crisis composition of demand has shifted from capital equipment to less import-intensive spending, such as consumption and government services.

china trade graphic

As politicians such as US Republican presidential candidate Donald Trump rail against “globalism” and promise to erect new barriers to commerce, policymakers and economists have also grown increasingly concerned about a slowdown in global trade growth. And according to the latest report by Global Trade Alert, which monitors protectionism around the world, that growth has disappeared altogether with the volume of goods traded around the world stagnant since January 2015.

Economists remain divided on the causes of the slowdown, some seeing long-term trends, including the shortening of global supply chains and the increasing role of digital trade. 

As the West Midlands Producers site notes, the reshoring trend, successes and possible pinch points, has been systematically explored and publicised by Aston Business School’s Professor David Bailey since 2013.

G20: mixed messages 

In their closing communique the G20 ministers last weekend reiterated a post-crisis pledge to avoid any move to protectionism, but ‘discriminatory measures’ such as local content rules and subsidies for local industry introduced by governments was up 50% in 2015 compared with the year before, according to the Global Trade Alert’s database – and G20 countries accounted for 81% of those measures.

The FT sees evidence that such measures are already having an impact on business decisions. In a speech in May at New York University, Jeff Immelt of General Electric said that faced with rising barriers to trade, a decision has been made to shift to a strategy of “localisation” rather than globalisation.

“In the face of a protectionist global environment, companies must navigate the world on their own,” said Mr Immelt. “This requires dramatic transformation. Going forward: We will localise.”