Local Economy Action Plan 2008


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Jason Eaton's Local Economy Action Plan for his ward in Syracuse, NY. Presented at the 2009 Financial Permaculture Course in Hohenwald, TN - Learn more at http://www.financialpermaculture.org

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  • Not necessarily egalitarian; one share one vote, voting power is defined by the groups
    Not looking to grow beyond it’ s13 members
  • Local Economy Action Plan 2008

    1. 1. An Action Plan for Building a Living Economy in Syracuse
    2. 2. LocalMatters2008 Mission Vision Strategies Objectives To build and maintain a sustainable, just, and efficient economy for the mutual benefit of our neighbors. A healthy local living economy of the people, for the people and by the people. Open Source, Group Collaboration, SystemsThinking, Financial Engineering andWhole Systems Design Creating wealth in our community by: • Aligning incentives • Promoting local ownership • Building relationships • Increasing the flow of information
    3. 3. TOOLS Business Associations Local/Sound Currency Community Ownership/Cooperative businesses Slow Food/CSA/SustainableAgriculture LandTrusts & Real Estate Cooperatives Circles/Neighborhood Stock Corporations/Exchanges Community Databank Bring it AllTogether
    4. 4. Jargon, Lingo, Mumbo Jumbo and Other Important Concepts
    5. 5. Vocabulary&Framework 1. This is OUR vision, notTHE vision. 2. If you hear a term you don’t understand – ask now. 3. If you hear an idea you don’t agree with – listen with open ears. 4. If part of what you hear is compelling – hold on to it. 5. If part of what you hear is in conflict with your principals – adapt the idea to your principals.
    6. 6. One that exercises supreme, permanent authority, especially in a nation or other governmental unit, as: 1. A king, queen, or other noble person who serves as chief of state; a ruler or monarch. 2. A national governing council or committee.
    7. 7. “A currency is only as strong as the confidence that people have in one another to produce something of value.” Robert Swann and Susan Witt, February 1995 Local Currencies: Catalysts for Sustainable Regional Economies. E.F. Schumacher website: Retrieved Dec 17, 2008
    8. 8. Features  100%Voluntary Participation  Does not violate autonomy  Does not risk proprietary/personal information  Exclusively by and for LOCAL businesses  Small (neighborhood) scale builds trust and relationships
    9. 9. Benefits For Producers • Economies of Scale • Purchasing Power • Manage Redundancy • Supply Chain Integration • Performance Feedback • Customer Loyalty • Improved Profitability • Competitive Pricing • Join Marketing/Branding • Build Social/FinancialCapital For Consumers • Easily Identify Local Firms • Improved Pricing • Relevant Goods & Services • Better Jobs • Higher Incomes • Reputation Networking • Enhanced Real EstateValues • ReducedTravel “An opportunity for producers and consumers to sit down at the table and figure out how they can help one another.” -R. Steiner
    10. 10. PossibleOutcomes  Local Business Directory & Maps  Coupons, GiftCertificates, Currency Redeemable at Participating Firms  Joint Ad Campaigns  Rating/Review System  Online Store/Catalog
    11. 11. Examples  Business Alliance for Local Living Economies (BALLE) www.livingeconomies.org  American Independent Business Alliance (AIBA) www.amiba.net  Greater Syracuse: Chamber of Commerce www.syracusechamber.com  Collingswood, NJ: Chamber of Commerce www.collingswood.com
    12. 12. What is money?
    13. 13. WhatIsCurrency? cur⋅ren⋅cy –noun, plural -cies. 1. something that is used as a medium of exchange; money. 2. general acceptance; prevalence; vogue. 3. a time or period during which something is widely accepted and circulated. 4. the fact or quality of being widely accepted and circulated from person to person. 5. circulation, as of coin. currency. (n.d.). Dictionary.com Unabridged (v 1.1). Retrieved December 18, 2008, from Dictionary.com website: http://dictionary.reference.com/browse/currency
    14. 14. PrinciplesofLocalCurrency  Represent a relationship between two people, a storing of value, or a medium of exchange  Currency has an inherent advantage over goods in that it isn’t perishable; this affects the distribution of wealth (R. Steiner)  Can be backed by hours, dollars, precious metals, goods, promises – or anything people will put faith in  Various currencies have been developed to address economic issues specific to an area and/or community
    15. 15. Types of TargetedCurrencies  Community –…supporting trade within a group of like-minded people…  Local – …support a small town or a neighborhood within a large city. ..punctuated by the strength of physical interaction and the chance … [to] cement communal bonds...these currencies can support ‘buy local’ programs that provide leverage against … big-box retailers.  Incentive / Loyalty – …often used by businesses to support return business and are issued based on buying activity.  Reputation – …non-tradeable currencies reflect a person’s standing within a particular community...popular in large online communities like eBay, where there is a combination of interactions with near-strangers and some type of risk...These currencies incent good behavior and reduce the free-rider problem,…your actions (positive and negative) will be recorded.  Social Justice – used to right a particular social wrong. In the case of food stamps, they allow less fortunate people to afford food.Time-Dollars release latent skills in a community and incent members to exchange those skills, providing self-sufficiency in communities ...  Economic Development –These currencies are built to improve the flow of national currencies, often within a geographic region defined by a city, county, multi-county region or other large trading area.They are often (but not always) built in partnership with municipal or state governments, or multi-regions jurisdictions and councils of governments. With Edits -Targeted currencies network, 2005. Retrieved from http://targetedcurrencies.net/moreabouttargetedcurrencies on Dec 17, 2008
    16. 16. Who’sGotYourBack? Asset-backed/Hard Currency Fiat/Soft Currency  Backed by a tangible tradable item for which the currency can be exchanged  Issuance is constrained by scarcity/effort  Reflects past productivity  Value is inherent  Is backed by a promise or threat  Issuance is potentially unlimited  Reflect future productivity  Value is tenuous, especially over long time periods
    17. 17. Examples  Berkshares  Colls Cash  Ithaca Hours  Totnes Pound  Chamber Bucks  Burlington Bread  More: http://www.smallisbeautiful.org/local_currencies/currency_groups.html
    18. 18. Berkshares  Backed by the federal dollars  10% discount  Who really benefits?
    19. 19. CollsCash “The campaign is designed to boost sales in the Borough and to increase support of local businesses while offering shoppers a big discount on everything in town…Several phase one customers mentioned they will buy holiday gifts, get orthodontics, remodel, dine out and buy more in Collingswood because they will be receiving such a discount.”
    20. 20. Que Bono:Who benefits?
    21. 21. CooperativeBusinesses  Cooperative Federal CU  South Side Food Coop
    22. 22. “Who’s your farmer?” - Catherine Austin Fitts
    23. 23. SlowFoodinOurPlace  CNY CSA  Grindstone Farm  Wiley Fox Farm  Syracuse Grows
    24. 24. Who’s earth is it anyway?
    25. 25. Examples  Jubilee Homes  Forest Row (Berkshires) LandTrust  Indian Line Farm (Berkshires) (1st CSA in USA)  Champlain HousingTrust (BurlingtonVT)
    26. 26. Challenges  Must show community benefit if tax exempt status  Housing: obtaining mortgages
    27. 27. Do you know 12 people you trust with your life?
    28. 28. InvestmentCircles  Westcott Series 1 Circle 1  Can we buy stock in a local organic farm?  Can we make money on it?
    29. 29. OneFormat–ManyReasons  Book Club  Investment Club  Support Group  Rising Out of Poverty  Movie Club
    30. 30. Improving the flow of local goods, services, and information.
    31. 31. TakingtheCommunityPublic  Overlaying a new social order on existing laws and customs  UsingWall Streets tools for communities  The Solari Stock Corporation  The A/B Share Model  Permanent local control  Creating local investment opportunities  Establishing the needed flow of information  Total Economic Return (TER)
    32. 32. WhatAre CriteriaforInvestmentReturn?  Creates Jobs  Is Beautiful  Presents a Business Opportunity  Generates Income  Heals People  Heals the Earth  Helps Children  Has no waste  Turns waste to energy  Adapts  Reports performance  Processes feedback  % Market Share  Total Market $  Net Profit Margin  Raises Local Multiplier  Reduces Local Leakage  Offsets Govt Spending  Offsets Charitable Giving  Jobs Substituted  Competitive Displacement  Lowers Barriers  Creates Liquidity  Improves Learning Speed  Economies of Scale  Performance Feedback  Popsicle Index Factor  …  …  …  …  …
    33. 33. CommunityDatabank
    34. 34. No one of these ideas will have a large transformative effect
    35. 35. TogetherTheyRe-WritetheRules  Dudley Steet Iniative  Financial Permaculture  Associative Economies (R. Steiner)  TransitionTowns http://www.transitiontowns.org/  Mondragon  Solari Inc.
    36. 36. An Action Plan for Building a Living Economy in Syracuse