A new citywide currency keeping money earned in city in the local economy

karen andy reeve pound

Above: Karen Leach from Localise West Midlands and Andy Reeve from Impact Hub Birmingham who have produced a currency note exclusive to Birmingham – see http://www.birminghammail.co.uk/news/midlands-news/birmingham-could-next-city-launch-8810436.

They are planning to follow the model of the existing Bristol Pound, which is currently used by 782 firms and generates £1 million of business each year.

Karen Leach, coordinator at Localise West Midlands, said: “What normally happens is money leaves the area all the time because you spend money in an organisation that isn’t locally based and locally owned. Money is constantly sucked out like water down a big plughole from the local economy. That’s what we’re trying to stop.”

Since its creation more than two years ago, the Bristol Pound has become the UK’s largest rival to Sterling and the first city-wide currency. Brixton, Stroud, Totnes and Exeter have also introduced the scheme – and it is hoped the Birmingham Pound will repeat their success with independent businesses.

bristol poundThe Bristol Pound, a non-profit organisation, is regulated by the Bristol Credit Union and has received backing from Bristol City Council which has discussed plans to pay staff in the currency. Around a quarter of current Bristol Pound transactions are made using paper notes in £1, £5, £10 and £20 denominations while the rest are made electronically by mobile phone text messages or online. Read more here: Bristol Mayor chooses to be paid in Bristol Pounds.

Consultations on developing the idea will be made by a campaign group of local credit unions, trade organisations and businesses following an initial meeting last week.

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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Exploring the systems by which we organise our livelihoods

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 barrow cadbury karen

 

In this Barrow Cadbury Trust blog, the co-ordinator of Localise West Midlands gives feedback on the opportunity to research the assumption at the heart of Localise West Midlands’ mission offered by the Trust.

The assumption is: “. . .that in a more localised economy, more people have a stake, which redistributes economic power and resilience, reducing disconnection and inequality . . . in need of exploration in the face of growing inequality and economic failure”. She continues:

“There are plentiful ideas around what we have been calling community economic development: social inclusion as CSR, community-led job creation, co-ops and social enterprises, local procurement initiatives. To many economic development practitioners these are very nice projects that go into a little box labelled “voluntary sector” and have little to do with the real economy, which is about big sites, tax breaks for multinational corporations – “prostituting ourselves for inward investment” as the Centre for Local Economic Strategies‘ Neil McInroy colourfully puts it.

“Our project, Mainstreaming Community Economic Development, is an attempt to take localised economies out of this little box. Firstly, to see the social potential not only of voluntary sector initiatives with social objectives, but also of private sector activity that is locally controlled and based, where the community’s participation is as owners, investors, purchasers and networkers . . . ”.

To read the whole article go to the Barrow Cadbury Trust blog

 

Our current economic predicament defined and the MCED way forward highlighted

 

Rob Hopkins, founder of the Transition Movement, quotes a brief but pointed analysis from a new report by Dr Tim Morgan called ‘The Perfect Storm: energy, finance and the end of growth‘, published by FTSE 250 company Tullett Prebon, saying:

“It’s stirring stuff.  His analysis of why we have ended up in our current economic predicament runs thus:

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He offers the best, and most to-the-point discussion of why energy return on energy invested (EROEI) matters, and why peak oil ought not be thought about as just the end of cheap energy, rather as the end of energy with a low EROEI.

Hopkins then quotes from a ‘fascinating post’ by Karen Leach of Localise West Midlands on the REconomy site, which gives him a sense of why what she calls “community economic development” or on this website we might call REconomy or “community resilience as economic development” is so different from the current all-prevailing approach, and why it addresses our needs far better.

Writing about their excellent recently published report ‘Mainstreaming Community Economic Development’, she summarises the report’s finding thus:

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