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.

 

 

 

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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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doncaster chamber logo

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.

birmingham pound header

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

 

 

 

International Alliance for Localization

ial logo

The International Alliance for Localization (IAL) is a new cross-cultural network of groups and individuals focused on resistance, renewal, and radically new visions of development and progress.

In less than two months, individuals from 28 different countries have joined. These include farmers, teachers, builders, community organizers, environmental stewards, peace activists, homesteaders, students, health workers, business consultants, writers, engineers, artists, radio producers, researchers, and more.

Many organizations have also signed up: groups focused on social justice, ecological restoration, spiritual values, sustainable food and farming, holistic education, and policy research and advocacy. (Below, farmers’ markets were pioneered in Britain and elsewhere by ISEC, which promotes locally based alternatives to the global consumer culture by writing, filming and practical action.)

farmers market - scandinavian or

Among these are:

Swadeshi Jagaran Manch (India);

Digo Bikas Institute (Nepal);

Localize West Midlands (UK);

The Sustainability Institute and Greyton Transition Town (South Africa);

Noakhali Rural Development Society (Bangladesh);

Centre for Global Justice (Mexico/USA);

Gaia Education (UK);

Holy Cross International Justice Office (USA);

Small Farm Training Center (USA), and many more.

This broad-based interest in the IAL shows that people worldwide are beginning to recognize that localization is a viable strategy for positive change on a global level.

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Local development as a strategic alternative in Fife

Once again many will question the dependence on a global market economy as headlines shout, “China’s ‘Black Monday’ sends markets reeling”. For months, in a range of publications, Mohamed El-Erian, who chairs President Obama’s Global Development Council, has been forecasting the risk of a ‘perfect storm’, adding that considering ‘its destructive potential, it warrants serious attention by policymakers’, though China does not loom large in his list of contributing factors.

fifediet small family2

Mike Small (with family, above) is said to be ‘behind’ the Fife Diet local eating experiment, which aims to relocalise food production and distribution on a regional basis, as a response to globalisation and climate change. See a 2008 Telegraph article and more in depth on the Transition Culture website.

Remarkably, it is funded by the Scottish Government’s Climate Challenge Fund and has also received funding from Celebrating Fife, the Co-op Community Fund and Awards for All.

Over an eight year period the Fife Diet has developed from a simple idea framed around ‘local eating’ to a complex one about sustainable food, environmental justice, globalisation and culture. They set out to build a sustainable food movement that popularised eating healthy, local produce in Fife, starting from the understanding that there is something fundamentally wrong with the food system but also from the thought that they could, by acting collectively, do something about it.

They now believe that food has become central to the precarious economy. Real progress won’t be made until control is regained over the retail experience, and profiteers that benefit from products that fuel obesity are confronted.

In the Food Manifesto they are developing, they call for opportunities for the ‘right to grow’ and an expectation of quality healthy food in our public institutions, aiming eventually to become – as the Scottish government puts it, a ‘Good Food Nation’.

FAQ: “But what fruit do you eat?” Fife’s Pittormie fruit farm produce:

fife's pittormirefruitboxjuly091

Remarkable achievements listed on their site:

CELEBRATING OUR OWN FOOD CULTURE

When we started we were met by a mixture of incredulity and poorly-disguised scepticism. People really didn’t think that you could eat food from Fife, and survive at all. It was just unthinkable, unimaginable.

CARBON SAVINGS

In 2011-2012 we saved 1019 tonnes of C02e. Then, in a three year period (April 2012- March 2015) we saved a further 6976.37 tonnes of C02e. These are immediate savings, by diverting food waste from landfill thereby avoiding creating methane, for example, or by sequestering carbon and enriching soil with compost, but also by eating locally, growing our own food, eating organic, changing the meat we ate (and eating less of it).

OUTREACH

We held or attended over 500 outreach events over the three years, engaging with 15,520 people.

GROWING SPACES

We established a community food growing garden, a wildlife and forest garden and a vibrant volunteer and community group who are maintaining them. We hosted 57 events at the garden, including the children’s gardening club, large community lunches and volunteer sessions.

COMMUNITY ENGAGEMENT

We ran 79 weekly children’s gardening clubs (79 clubs over three years) and hosted 7 large-scale community events.

LEADING THE WAY

We were part of building a new food movement in Scotland that encompasses the right to food, championing small producers, insisting on sustainability as a measurement of quality in food production and celebrating food sovereignty.

NEW ORCHARDS

We planted 7 orchards around Scotland from Galloway to Sutherland with our Silver Bough tour (‘ a cultural conversation about apples’).

SCHOOL LUNCHES PILOT

We collaborated with Fife Council and the Soil Association in a pilot project exploring regionally sourced, healthy, sustainable and organic school lunches. See here.

INSPIRATIONAL PRINTED MATERIAL

We published a series of inspiring posters, postcards, booklets and other materials including recipe books, calendars, guides on native apple varieties and a booklet on gardening with kids. We also produced a free Ebook for our members of Collected Recipes from the life of the project.

BIRTHING THE ORCHARD COLLECTIVE

We curated and hosted the National Orchard gathering and helping the Orchard Collective into existence.

THE BIGGER PICTURE

We are proud to have been part of a wider movement and welcomed the collaborative work over the past eight years with such groups as Nourish, the Soil Association, Slow Food, Permaculture Scotland and Transition Towns.

Much more here: http://fifediet.co.uk/fife-diet-chronology/

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End note: protect and rediversify local economies

pp hines logoAs LWM’s co-founder, Colin Hines, has written, there is growing opposition to a system which regards as inevitable the driving down of tax rates for higher income earners, worsens social and environmental conditions and kills local jobs and small business opportunities:

“Whistling in the dark to keep up the nation’s economic spirits by promising export-led growth in an era of rising Asian dominance is a ridiculous policy. The alternative to these dangerous and damaging dark alleys is to propose a set of practical measures for protecting and rediversifyng local economies. This is the only way to tackle the economic and environmental crises, return local control of the economy to citizens and provide a sense of hope for their future . . .”

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Human-scale, decentralised technologies

small is beautiful latest edition coverIn Lean Logic, the late David Fleming recalls that in in 1995, the Times Literary Supplement placed a book by E.F. Schumacher, the chief economic advisor to the UK Coal Board for two post war decades, among the 100 most influential books published since World War II. Small Is Beautiful: a study of economics as if people mattered has been translated into many languages.

This internationally influential economic thinker, statistician and economist, who advocated human-scale, decentralised and appropriate technologies, would have heartily agreed with Karen Leach’s observation that the global drive for the mega and mega-complex solution is part of the centralisation drive – where decision-makers can’t see the collective potential of small scale technology, now often called ‘appropriate technology’ (AT).

Fleming records that Schumacher deplored the “countless ‘experts’ who cannot conceive the possibility of any industrial production unless all the paraphernalia of the Western way of life are provided in advance. The ‘basis of everything’, they say, is of course electricity, steel, cement, near-perfect organisation, sophisticated accountancy. . . In blind pursuit of [a] highly questionable utopia, these ‘experts’ tend to neglect everything that is realistically possible“.

 Locally designed using local materials

AT is designed to fit the circumstances of the people who are to use it; people who need a solution which is cheap to build, small-scale, made from local materials, easy to operate, simple to maintain and energy-efficient is often. It does not start a sequence of pollution, with clean-up commitments, repairs and costs extending into the future. We suggest example:

  • micro-hydro turbines, long-lasting and low-maintenance provide enough power for a number of houses or a small community. The nearest example is probably the Beeston Weir project in the East Midlands. Practical Action can offer far cheaper turbines than commercial products in this country;
  • off-grid living can include solar which generates electricity for immediate use, with no grid connection; solar panels convert sunlight to energy which charges the battery built into lights, computers and refrigerators;
  • there are several reed beds in the region used for the water treatment of a single house or a small neighbourhood – water is cleaned by micro-organisms living on the root system; probably the nearest small-scale example is at Ryton Organic Garden near Coventry.
  • straw-bale construction, probably the nearest regional example is the next door neighbour of Dragon Orchard in Herefordshire;
  • see also the simple-to-build, cost-effective low environmental impact office in Moseley.

LWM’s Mission statement

Localise West Midlands is a not-for-profit organisation which exists to promote the environmental, social and economic benefits of:

  • Local trading, using local businesses, materials and supply chains
  • Linking local needs to local resources
  • Development of community and local capacity
  • Decentralisation of appropriate democratic and economic power
  • Provision of services tailored to meet local needs.

This localisation approach makes economic development and government systems more sensitive to local autonomy, culture, wellbeing and the responsible use of finite resources, and is growing in popularity with people and organisations all over the world.

For more information about some of these technologies, contact the Renewable Energy Centre in Kenilworth. See also Localise West Midlands Scoping Study: Decentralised Energy for Birmingham (pdf)

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Could the end of economic growth bring a fairer more prosperous society?

New book to cause fireworks at the House of Lords

Following on from Tim Jackson’s excellent Prosperity without Growth some years back, a new book, co-edited by locally based academic John Blewitt, is exploring the evidence around the growth dogma.

PostgrowthcoverThe new Green House Think Tank book, due to be launched on 5th November at the House of Lords, uses contributions from leading thinkers to challenge the assumption that it is bad news when the economy doesn’t grow.

As the flyer says:

For decades, it has been widely recognised that there are ecological limits to continuing economic growth and that different ways of living, working and organising our economies are urgently required. This urgency has increased since the financial crash of 2007-2008 – but mainstream economists and politicians are unable to think differently. The authors demonstrate why our economic system demands ecologically unsustainable growth and the pursuit of more ‘stuff’. They believe that what matters is quality, not quantity – a better life based on having fewer material possessions, less production and less work. Such a way of life will emphasise well-being, community, security, and what Ivan Illich rightly called ‘conviviality’. That is, more real wealth.

The book will therefore appeal to everyone curious as to how a new post-growth economics can be conceived and enacted. It will be of particular interest to policy makers, politicians, business people, trade unionists, academics, students, journalists and a wide range of people working in the not for profit sector.

The book is being launched at the House of Lords on Bonfire Night: 5th November, 6pm. You can attend by booking here. https://www.eventbrite.com/e/book-launch-and-debate-the-post-growth-project-how-the-end-of-economic-growth-could-bring-a-fairer-tickets-13547203049
Editors and contributors:

John Blewitt is a Distinguished Fellow of the Schumacher Institute. He is author of Media, Ecology and Conservation (Green Books, 2010), Understanding Sustainable Development (Earthscan, 2014) and co-author of Sustainable Business (Earthscan, 2014). A sociologist by training, he currently works at Aston Business School.

Ray Cunningham is a freelance writer, speaker, translator and consultant on British-German knowledge exchange, mainly in the area of sustainability. He is the former Director of the the Anglo-German Foundation for the Study of Industrial Society and joint Founder and Convenor of the British-German Environment Forum.

The contributors are: Molly Scott Cato, Andrew Dobson, Jonathan Essex, Brian Heatley, Andrew Pearmain and Rupert Read.

Globalisation – the open trading system – is fragmenting

Philip Stephens, an associate editor, in the Financial Times: Globalisation – the open trading system – is fragmenting; it needs an enforcer – a hegemon, a concert of powers or global governance arrangements”.

Evidence: the collapse of the Doha, the demise of global free-trade agreements, and the emergence of regional coalitions and deals. The emerging economies are building south-south relationships and the Brics nations are setting up their own financial institutions.

Colin Hines, co-founder of LWM goes further – and deeper. He advocates the rebuilding and rediversifying of economies by limiting the entry of finance, goods and people from other countries, ensuring local provision of goods, finance and services and weaning themselves off export dependence. Depending on the context, ‘local’ goods would come from the nearest source, the region, the nation state or even a regional grouping of nation states – eg oranges from EU/Spain.

Domestic businesses and funding sources would then meet the needs of the majority in society in all countries. The prospect of such increasing economic security for the majority could gain widespread political support ranging from those on the left, the centre and the greens through to small ‘c’ conservatives.

In 2008, just before the economic collapse, as GND convenor, he presented a mechanism which would have enabled the Green New Deal to prosper. ‘Green Quantitative Easing’ would have made every building in the country energy efficient, and built hundreds of thousands of new, affordable and energy-efficient homes. A massive boost would have been given to economic activity, providing jobs on a living wage in every community in the UK, whilst reducing its environmental impact.

Later this month he will be speaking in Italy at a conference of left economists to float the progressive protectionism agenda and criticise the left, centre and greens for their support of open borders, leaving the extreme right in an ever more powerful position.

Calls for a living wage

Andrew Lydon writes that, over the last year, probably the most radical proposal made by Labour leader Ed Miliband is about the Living Wage and Living Wage Zones:

minimum not living wage logo“Living wage zones would work for everyone – the people who get decent pay, the employers who get a more committed workforce and the government that saves money on credits.” He said the proposal was a labour market reform that tackled in-work poverty and lifted productivity without boosting the welfare bill.

Refocussing on raising the minimum wage, on the 19th May Miliband launched a report by a previous vice chair of KPMG, Alan Buckle, who looked at the issue through ‘business eyes’. He says action on low pay should be seen as part of a wider strategy to move towards a high skill, high productivity economy and that we should recognise that higher pay will be good for government finances, in terms of the need for fewer tax credits and a lower social security bill.

jrf logoThe Joseph Rowntree Foundation’s Minimum Income Standard project aims to define an ‘adequate’ income. Read more here.

Of the 400 councils In England and Wales 82 are now paying or committed to pay their staff the living wage. All 32 councils in Scotland are living wage employers paying their staff at least the living wage.

As Citizens Advice Scotland’s Chief Executive wrote to the chancellor earlier this year, economists suggest the economic multiplier for income transfers to low income families is higher; they estimate that for every pound GDP increases by £1.60. Families with low income spend the additional money, stimulating the economy by boosting demand and supporting businesses.

living wage logoBut what of private business? Archbishop John Sentamu, who chairs the Living Wage Commission, points out that hundreds of employers – those who are able to do so – have begun to pay a living wage?

In a Huffington Post article, Jehangir S. Pocha, the Delhi-based editor-in-chief of NewsX, said:the one thing that would combat poverty without bankrupting the exchequer – is getting businesses to pay workers a living wage . . .”

Andrew Lydon looks for evidence that the ground is being prepared and we wonder if will ever become the norm. Pocha sees a profound psychological obstacle to achieving a living wage (and, we would add, other reforms):

“This social assumption that “they” are inherently different from ‘us’ and do not have to have access to things like decent housing, clothes, food, leisure, education and health care is etched into the Indian psyche”.

This social assumption is also etched into the psyche of British decision makers and their corporate allies.

The Green Deal: why it has not taken off and what we can expect in the future

A “must read” from Phil Beardmore for all interested in Green Deal & Green New Deal:
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In this article – first posted on Birmingham Eastside – Phil Beardmore describes why the Green Deal scheme has not taken off and what we can expect in the future.