Anchoring community wealth

Preston’s skyline: Carl Ji, a Chinese student, at the University of Central Lancashire

Austerity has been devolved to local councils and, perversely, areas with higher levels of poverty have been hit hardest, councils have on average faced 40% cuts in their budgets.

In the face of adversity councils such as Preston have responded by bringing together anchor institutions and working with them to drive through a local programme of economic transformation. The government’s Commission for Employment and Skills defines an ‘anchor institution’ as “one that, alongside its main function, plays a significant and recognised role in a locality by making a strategic contribution to the local economy” and ‘tending’ to be non-profit.

By changing their procurement policies, these anchor institutions were able to drive up spending locally protecting businesses and jobs. They are looking at the council pension fund to see if its investment can support local businesses keeping the money circulating in their town.

A study by the Centre for Local Economic Strategies found that six of the anchor institutions in the area are now spending 18% of their budget in Preston, up from 5% in 2013. So an extra £75 million a year is being spent within the city, with the top 300 local suppliers creating an extra 800 jobs last year alone. And others are watching: Manchester city council has now increased its local spend from 44% of its budget to 70%; Lowestoft and Salford are also interested.

Last year this blog reported that Birmingham City Council was to work with Centre for Local Economic Strategies, with funding from the Barrow Cadbury Trust and support from Localise West Midlands, to see how anchor institutions in the non-profit and private sectors, including Birmingham University, Pioneer Housing and the QE hospital, could use their spending power to increase economic opportunities for Birmingham’s communities, businesses and citizens. Read more on the council website here.

In a separate project, Localise West Midlands has been working with the Midland Metropolitan Hospital (under construction, artist’s impression) which will be the closest adult hospital to the centre of Birmingham. The Sandwell & West Birmingham NHS Trust and LWM are partners in Urban Innovative Actions supporting the development of the local economy. The Trust hopes to spend 2% of the new hospital’s annual budget with local suppliers, adding £5-8m to the local economy. It will provide locally sourced meals and the builder has a target of 70% local employment, aiming to source 80% of construction materials locally.

Alice Thomson in The Times pointed out that making a legal requirement that councils buy and hire goods and services locally is banned by EU law at the moment, so it should be noted that the Preston project operates on a voluntary basis.

She commented: “The government should take the idea and encourage it, particularly in hollowed-out market towns where out of town shopping centres have crushed their sense of identity” adding “But (procurement policies) could also be used for more high-profile programmes such as the rebuilding of Big Ben, where the steel has had to come from Brazil, Germany and the United Arab Emirates, or the V&A which showcases Britain’s greatest designs but where the tiles for the new forecourt came from Holland”.

 

 

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A strategic alternative: localised and labour-intensive food production

LWM’s co-founder Colin Hines, in his latest book, Progressive Protectionism, asks: “In a sustainable system, would not each country aim to produce its own staple food? Surpluses and exotics could be exported, speculation in food by unproductive middlemen would be outlawed and vitally important food producers encouraged at every turn”.

He notes that at present, the UK feeds only around 60% of its population of 65 million. The EU was the next largest supplier at 27%. The distribution of UK imports from Europe has changed relatively little over the last 15 years. Other food travels much further: click on the link for a larger picture: http://www.coolgeography.co.uk/A-level/AQA/Year%2012/Food%20supply/Changes%20in%20food%20supply/Food%20Miles%20Britain.png

There is no guarantee that these supplies would continue under the same terms following the outcome of the Brexit negotiations and there are other potential threats, such as drought, floods and/or increased global demand.

A 2007 study ‘Can Britain feed itself?’ by Simon Fairlie estimated that it could, but that the dietary changes would be significant including:

  • far less meat consumption,
  • feeding livestock upon food wastes and residues;
  • returning human sewage to productive land;
  • dispersal of animals on mixed farms and smallholdings,
  • local slaughter and food distribution;
  • managing animals to ensure optimum recuperation of manure;
  • and selecting and managing livestock, especially dairy cows, to be nitrogen providers.

Hines notes that these measures would demand more human labour and a more even dispersal of livestock and humans around the country.

The World Trade Organisation (WTO) promotes a global economy which requires agricultural commodities to be transported for long distances, processed and packaged to survive the journey. As global food production and trade probably consume more fossil fuel than any other industrial sector, substantially increasing greenhouse gas emissions and making climate objectives much harder to achieve, i ts Agreement on Agriculture should be superseded by a World Localisation Organisation (WLO), under which all countries would be encouraged to reach maximum self-sufficiency in food.

Trade in food which cannot be grown domestically should be obtained, where feasible, from neighbouring countries. Long-distance trade should be limited to food not available in the region and countries exporting food should use the revenue to increase their own level of food security.

Hines ends by endorsing – as the answer – Tim Lang’s injunctions in the Foreword to the report of the Sustainable Development Commission (above left): calling for significantly less food wastage, more produced from less land and dietary change – eating more plant-based foods, less meat and dairy.

 

 

 

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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 new-build housing

Architect and writer Clive Aslet (left) writes about a development of 4,000 houses on 500 acres – houses, small apartment blocks, schools, surgeries, mixed income housing, shops, business premises and leisure facilities and green spaces – on the edge of Newquay. There is an emphasis on local labour, materials and procurement.

“How society chooses to house people is every bit as important as how it chooses to feed people,” says Tim Gray, estate surveyor and chief of operations “If you can get those two things right, you will be happier, healthier and better able to engage socially. the ambition is to build community and engender civic pride, to live so that you can meet your daily needs conveniently on foot, not to differentiate between homes of different tenures, and to be connected socially with the adjacent settlements — this should provide good foundations for deciding how the nation should build homes in the future. There really is an alternative.”

Aslet describes a number of features:

  • a core commitment to spend the money in Cornwall, using local labour and materials and a pattern book with typical Cornish vernacular details, e.g. roofs are made from Cornish slate from a nearby quarry
  • The plans include setting up a town farm in some listed buildings to provide food for residents of the development.
  • There will be mixed-use neighbourhoods, in which the car is subservient to the pedestrian.
  • There will be a community orchard, allotments and ‘edible gardens’.
  • Low-cost rented homes are scattered among the more expensive owner-occupied ones 30% of the housing is affordable.

The area has been given a new lease of life. The quarry provides jobs, and so do the builders responsible for the work — all firms are from the southwest, whose work not only requires local labour, but also helps to establish local supply chains. They form what Gray calls a “consortium” a method that ensures the architecture is practical and appropriate for the local market.

Newquay is poor and homes are particularly needed by young people. Judging from conversations with a number of people in their twenties and thirties and young families met in the area, they like the designs, the edible gardens (herbs and fruit bushes are planted next to houses), espaliered pear trees and bee bricks (bricks with holes laid into the eaves of houses to welcome threatened bee populations), they’re all part of the philosophy — as well as local style, local materials and local employment . . . local food.

This is symbolised by the community orchard. seven acres of land that has been turned into allotments. “Trespassers will be composted”, reads one of the signs. Orchard and allotments are visible signs of the local food web that is being encouraged. They’re also somewhere that people from the new housing can meet long-time Newquay residents.

As Tim Gray said, this should provide a good foundation for deciding how the nation should build homes in the future. There really is an alternative: Aslet sees it as the beginning of a movement that made Britain better to live in.

 

 

 

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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.

 

 

 

 

FT: American executives turn away from globalisation towards a more localised world

Last month the Financial Times’ Gillian Tett met Inge Thulin, the Swedish-born chief executive of 3M, an American conglomerate at the Council on Foreign Relations in New York (below).

She reports that – though 60% of its revenues and 40% of 3M’s workforce are outside American shores – Mr Thulin, when discussing corporate strategy, prefers to talk about “localisation”:

“Our strategy has changed. If you go back [several] years, there was a strategy of producing at huge facilities at certain places around the world, and shipping it to other countries. But now we have a strategy of localisation and regionalisation. We think you should invest in your domestic market as much as you can.”

Instead of “free” trade, American executives are now calling for “fair” trade, along with “reciprocity” and “equalisation” of trade deals.

When Donald Trump started talking about restoring US manufacturing last year, he tapped into a subtle trend that was already emerging. As the West Midlands Producers’ site noted, the reshoring trend, successes and possible pinch points, have been systematically explored and publicised by Aston University’s Professor David Bailey since 2013; two years it quoted Professor Dr Michael D. Johnson, Department of Engineering Technology and Industrial Distribution, Texas A&M University, briefly in the FT:

“My colleagues and I have found that importing goods from China to developed countries (for example, the US) entails numerous increased costs: transportation, inventory carrying, and production and logistics oversight. The combination of these increased costs, just-in-time manufacturing needs, and increased developing country labour rates contribute to the economic viability of localised flexible manufacturing facilities serving developed country markets”.

Ms Tett recommends a survey of US companies conducted by the Boston Consulting Group which showed that as recently as 2012 American companies were busy building cross-border supply chains, 30% with China – but 31% in 2015 planned to boost production in America and only 20% in China.

  • One reason for this shift is a rise in relative wage costs in China.
  • Another is that production costs in the US have fallen because of automation and cheap energy.
  • However, a third point is that chief executives have realised that long supply chains create political and logistical risks.

“The days of outsourcing are declining,” Jeff Immelt, General Electric chief executive, observed late last year. “Chasing the lowest labour costs is yesterday’s model.” even before Mr Trump arrived in office, the C-suite (slang: important senior executives) was losing its blind faith in globalisation. For better or worse, we face a more localised world”.

 

 

 

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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.

roamiancoop

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.

 

 

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.”

 

 

 

MUFP: 100 city regions hope to reduce greenhouse gas emissions by changing the food system

urban-food-policy-pact

In 2015, led by Milan, a coalition of 100 cities from all continents signed a Milan Urban Food Policy Pact (MUFP) in Milan’s Palazzo Reale and presented it to Ban-Ki Moon, UN Secretary General, in New York on World Food Day, October 16. To read the latest news go to its website.

They now recognise that their food systems are having high health and environmental impacts. As Professor Tim Lang comments in ‘Food Research’: “Aspirations for cheap food have become hard-wired into consumer expectations. Waste is rampant. Governments bow too much to giant food companies selling sugary, salty, fatty, ultra-processed food. Marketing budgets dwarf food education. No-one seems to be in overall control”.

He continues: “Cities are powerhouses of work but parasitic on cheap labour on the land. Their budgets are squeezed but their diet-related costs are rising. Their dense populations could be energy and food efficient but require huge infrastructure and change to be so . . . A new urban politics is emerging, gradually recognising the need to move beyond the neoliberal era’s commitment to cheap and plentiful food which has only spawned an horrendous new set of challenges which it cannot resolve . . .  Waste. The new food poor. Rising obesity. Street litter. Inequalities. Low waged food work”.

17sd-2-g-goals

Though the 17 Sustainable Development Goals are translated as 169 targets, 70 of which involve food, as Lang says: “New techno-imperialists whisper sweet nothings into politicians’ ears, offering another bout of technical intensification to keep this show on the road. This is not just genetic modification, which is already in trouble, yoked as so much is with use of glyphosate, the herbicide previously deemed benign but now in trouble as a probable carcinogen. There’s a raft of new technical sectors offering food fixes: robotics, nanotechnology (putting minute particles into food); synthetic biology; Big Data and the information revolutions; the promise of personalised healthcare applying life science wizardry. Underpinning them all is continued reliance on but nervousness about oil-based fertilisers. It was they who kept the food wheels turning at the last big moment of reflection in the mid 1970s”.

tim-langLang says, “Now we need another package. But which is it to be? Is it more Big Farming or more horticulture? And what sort? Plants not animals are the key to the new metric: how to feed people from declining available growing space”.

He calls for strong political voice and says that the positive news about a sustainable future needs to be grasped: closer foodways, better jobs, healthier populations instead of cheap food, overflowing hospitals and denuded nature.