Local economics - David Boyle

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Local economics - David Boyle

  1. 1. Making things happen again<br />Is it possible?<br />David Boyle<br />23 June 2011<br />
  2. 2. Background<br /> It is a truth universally acknowledged that a government in recession must be in want of a recovery policy...<br />
  3. 3. The northern cities?<br />
  4. 4. The problem<br /><ul><li>Treasury horror at regional policy.
  5. 5. ‘Tesco’ approach (a jobs plan not a recovery plan)
  6. 6. The old dream (enterprise fills a vacuum)</li></ul>. <br />
  7. 7. The underlying problem<br /><ul><li>Bone-headed centralisation
  8. 8. Unbalanced economic policy (set to suit the City)
  9. 9. Poor transport infrastructure
  10. 10. Weak regional institutions
  11. 11. ‘Can’t do, won’t do’ culture</li></li></ul><li>Local government economic policy<br />“The old economy got burned down in the financial crisis. But a new economy might be able to rise, Phoenix-like, from the ashes of the old...”<br />Nick Clegg, Rotherham, 4 Feb 2011<br />
  12. 12. Introducing…<br />Thenew economics<br />Ten Step programme <br />for local recovery...<br />
  13. 13. Step1<br />Rebuild local economies by plugging the leaks that are draining local money away. <br />
  14. 14. Money flows in<br />
  15. 15. Money flows out again<br />Knowlsey study (2001): only 8% stays put<br />Cornwall study (2001):<br />£1 in supermarket = £1.40<br />£1 in veggie box = £2.50<br />
  16. 16. Irrigation<br />If money coming in goes right out, then the economy doesn’t benefit.<br />To keep money circulating in the local economy, you must create linkages that enable people to spend locally.<br />
  17. 17. Prince Charles circulating money<br />
  18. 18. Flow<br />
  19. 19. The circulation of blood<br />
  20. 20. Marsh Farm<br />
  21. 21. What it means…<br />It isn’t how much money you have going into an area that counts, it’s how you use it....<br />
  22. 22. Step 2<br />Develop local diversity and distinctiveness.<br />
  23. 23. Clone Town Britain (2005-10)<br />
  24. 24. Supplicants to Tesco<br />“Developers are like urban Domestos. They destroy 99% of all known distinctiveness.” Hugh Pearman, Sunday Times<br />
  25. 25. Dependence and independence<br />
  26. 26. … local pride<br />
  27. 27. Step 3<br />Bust local monopolies to let enterprise flourish. <br /> <br />
  28. 28. Which is the anchor store?<br />
  29. 29. San Diego<br />
  30. 30. Step 4<br />Organise enterprise coaching, support and advice in every neighbourhood.<br /> <br />
  31. 31. BizFizz<br />
  32. 32. BizFizz network map<br />
  33. 33. Plugging the leaks<br />
  34. 34. Step 5<br />Use local resources to build an effective new local lending infrastructure. <br /> <br />
  35. 35. Number of banks per million people<br />170 (UK)<br />520 (Germany)<br />960 (France)<br />
  36. 36. It isn’t the money, it’s the lenders<br /><ul><li>Green investment bank
  37. 37. Local pensions
  38. 38. Local authority banks
  39. 39. Postbank
  40. 40. CDFIs and credit unions
  41. 41. Mission related investment</li></li></ul><li>Step 6<br />Invest in local energy and food. <br /> <br />
  42. 42. A few facts…<br />Proportion of UK energy generated by local authorities: 0.01%<br />Equivalent figure in Germany: 1%<br />Proportion of energy lost in transmission: two thirds<br />
  43. 43. Step 7<br />Use waste products as raw material for new enterprises. <br /> <br />
  44. 44. Virtuous circles<br />
  45. 45. Bulky Bob’s<br />
  46. 46. Step 8<br />Use public sector spending to local money flows.<br /> <br />
  47. 47. Cleveland<br />
  48. 48. Mondragon<br />
  49. 49. Evergreen co-operatives<br />
  50. 50. Evergreen again<br />
  51. 51. Evergreen principles<br /><ul><li>The new co-operatives that employ local people.
  52. 52. Redirecting the spending power of the local hospital to launch them and underpin them.</li></li></ul><li>Step 9<br />Launch a range of new kinds of money.<br />
  53. 53. Free money<br />“On the morning after the Depression a man came to work building a house, and the foreman said to him "Sorry chum you can't work today. There ain't no inches." He said "What do you mean there ain't no inches? We got lumber, we got metal, we even got tape measures." The foreman said "The trouble with you is you don't understand business. There are no inches. We have been using too many of them and there are not enough to go around.” Alan Watts, From Time to Eternity, 1960<br />
  54. 54. Local economic exchange<br />
  55. 55. Step 109<br />Experimenting with new kinds of credit creation for local public benefit.<br />
  56. 56. Real QE?<br />
  57. 57. Find out more…<br />New Economics Foundation www.neweconomics.org<br />Plugging the leaks www.pluggingtheleaks.org.uk<br />Local money flows www.lm3.org.uk<br />BizFizzwww.bizfizz.org.uk<br />Evergreen www.evergreencoop.com<br />Louisville business alliancewww.keeplouisvilleweird.com<br />

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