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Creating Local Economy

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By amato


Vision (Zeitgeist)

Bringing diverse elements of the local community into greater accord around the broader issue of sustainability. Deepening dialogue and collaborative effort amongst the critical players in areas of food security, economic cooperation, social engineering, and political activism.

To ensure local economic stability in the face of predatory forces (corporate entities from outside the community) we must begin to map the ways in which resources are exchanged. Most importantly, growing an economy of cooperation rather than an economy of convenience is the mindful approach necessary to nurture humanistic values (life, liberty, happiness).


Food Security

Despite the prevalence of urban sprawl and the consequent centralization of food production outside the community, there are methods for building food security into the city planning agenda.

Neighborhoods alone can petition city planners to consider the benefit of offering subsidies (in the form of tax rebates) to families who will agree to contribute a portion of their land to the production of foodstuffs. Rooftops and lawns can be employed to grow staples, and the addition of even one fruit-tree per neighborhood can be a significant step toward local self-sufficiency.

A more serious step is to implement a program dubbed: Parks as Farms and Farms as Parks. When food security becomes a critical component of sustainable economy, which it ultimately must, the importance of having purely recreational areas of green-space will be balanced with the greater need for sustainable land-use. Just as every city park could have a small to medium-size garden plot or orchard, so can every local farm host a city-sponsored program of education and enjoyment centered around agricultural practices. The thrust of this initiative is to both highlight the critical importance of agrarianism, and to develop increased local economic stimulus.


Economic Cooperation

Community is defined by functioning 'with unity'. The economic sector is dominated by a competitive mindset that prevents its deeper unification. In order to build economic cooperation, and its consequent benefits, into the local community a new model must prevail. When networks of local 'stakeholders', and consumers themselves, are joined in economic partnerships, the development of collective economic power becomes much more readily possible.

To achieve this, nothing less than a grassroots campaign spearheaded by a wide cross-section of local interests, those most intimately concerned with sustainable economy, must be organized. The functional aim of this cooperative effort would be to offer competitive advantages to those participating in the initiative. This may require short-term sacrifice of profitability for the purpose of transitioning to local 'economies of scale' that herald a greater long-term benefit.

Social Engineering

Social systems are malleable and demand regular reformulation to keep pace with changing economic conditions. Presently, there are serious threats to the vitality of local economies in the form of corporate interests who act in a predatory fashion to consolidate wealth rather than distribute it (invest) at the community level. Thus communities are bound to develop measures to protect themselves. Knowledge is the best defense. This knowledge must extend into the realm of banking and the monetary system as a whole.

One of the key practices that will foster local economic health in the medium-term is choosing to bank with community-owned and operated financial institutions. These firms typically invest in other local businesses and programs, and thus keep the community's funds circulating within that economic sphere. Businesses, especially larger ones such as real-estate companies and mortgage brokerages, must see the virtue of patronizing local banks as a means to foster greater control over the community's economic strength. This, in the end, can create a concentration of wealth that, in aggregate, leads to overall improvement in economic conditions.

Another initiative not to be ignored is the implementation of a local currency pegged to the 'natural capital' of human and ecological resources. Any individual or business involved with preservation of our natural heritage should, by rights, be granted an economic advantage in recognition of this investment. Similarly, any person or entity who contributes to an economy of cooperation that bolsters overall community wealth should derive a tangible near-term benefit. The best way to achieve this is through the introduction of a redemptive 'common-wealth' system of shares that is capitalized by the participants.

There are many established systems of alternative currency, such as the Ithaca Hour and the Mondragon model in Spain, that offer the grassroots a chance to break with unsustainable monetary policy. This is achieved by rewarding people for their community-based efforts, and simultaneously creating an economy of cooperation that can withstand macro-economic disruptions. This is the only responsible course for those who see the dangers presented by climate change and economic/political instability around the world.

Political Activism

The principle advantage of such a system is that it can serve as a political rallying point which would ultimately win the support of local government. Once the political will is strong enough to mandate legislative changes influencing local economic practices, then the dangers of a totally unregulated 'free market' will be appropriately checked. Arguments that this is counter to the so-called "American Way", must be countered with the knowledge that predatory economics has thrived in a climate of lax controls and public ignorance of macro-economic realities. Limited socialization of the economic sphere is wise when there is a severe imbalance in the economy.

Making local economy an integral part of political activism is a key to having its influence felt at all levels of the community. For instance, efforts to make the community more energy efficient can be melded with municipal programs to provide affordable housing, amortizing the energy investment in terms of social uplift. This, however, requires a political context, i.e. that the future of the community is dependent upon everyone having an opportunity to thrive. If we acknowledge the present lack of a social compact, a covenant with the people on the part of local government to ensure an end to disenfranchisement, then we can begin to advocate for basic changes in the way that government operates.

Simple education of local businesses as to the merits of economic cooperation can be a business in itself, and act as a 'feedback loop' reinforcing the fiscal responsibility that is community-oriented economics.


Conclusion

The first tenet of community economics, as juxtaposed to global commerce, is that Natural Capital (both human and ecological resources) cannot be adequately valued in terms of dollars. The 'just weights and measures' historically integral to a balanced monetary system have been removed, leaving the community vulnerable to extra-governmental (private) influence and macro-economic disruptions. It remains for the community to 're-capitalize' the local economy through social engineering programs aimed at circulating and focusing wealth bio-regionally. Where predatory business activities are identified, the products and services they purvey must be made obsolete by creative means within the local sphere.


The concrete result of these initiatives to restore local economy will be the reclamation of social cohesion. People will gain great optimism and strength from actualizing the hope of a community that can support itself, feed itself, and power itself locally. Creativity is our best commodity. Letting it extend to engineering the socio-economic structure as a whole must no longer be considered taboo if we are to thrive as a community.

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