Understanding localism and the supplicant stateBroadening the debate

David Boyle, new economics foundation 9 December 2010

Why only two cheers for Localism Bill?

• Whitehall is still centralist. Our political language is centralist.

• Local decisions are not enough.

Localism?

“Department for Transport is reviewing the policy on traffic signs and will issue new advice on how to cut down on the clutter later this year.” BBC 26 August 2010

Missing aspects of localism

• How to give back power and initiative to public service staff.

• How to make public services more human scale.

• How to hand more responsibility to service users for delivering broader services, to make real change possible.

• How to localise economic power as well as political power.

Supplicants to Tesco

“Developers are like urban Domestos. They destroy 99% of all known distinctiveness.” Hugh Pearman, Sunday Times

No localism without…

• Tackling the semi-monopolies.

• Local business decisions.

• Local credit.

Number of banks per million people

170 (UK)

520 (Germany)

960 (France)

Outcomes chartNEW SUSTAINABLE LOCAL ECONOMY

High levels of well-being for all within the biosphere limitsAdult health and wellbeing: NI 119 self-reported measure of people’s overall health and well-being; NI186 per capita reduction in CO2 emissions in the LA area

Positive local economic outcomes Positive social outcomes Positive environmental outcomes

Elements Responsible Micro Positive Local Money & Resource Flows

Assets Base & Enablin

g Environmen

t

Public Sector & Large Business Responsiveness

Community & Civil Voice Capacity

Environmental Sustainability Interdependence

Outcomes Diverse & vibrant range of responsible businesses and enterprises responding to market demands to create positive social, economic & environmental outcomes

Increased level of effectiveness in use of money and resources

Strong local economic asset base (attitude, skills, knowledge, physical, financial services, natural) and supportive enabling environment

Public and business bodies working to actively strengthen & invest in the local economy to create positive social, economic & environmental outcomes

Strong leadership, activism, participation, cohesion, capability & resilience of individuals & groups

Positive social & economic change with ecological efficiency. Sustainability and reduced community environmental footprint

Increased understanding of economic, cultural and ecological interconnections that link communities, span the globe and impact on the future.

Relationship to one planet living

Local & sustainable foodEquity & Fair trade

Local and sustainable materialsLocal & sustainable foodSustainable water

Natural Habitats & wildlifeCultural & heritage

Zero carbonZero wasteLocal and sustainable materialsSustainable waterSustainable transportEquity & Fair trade

Zero carbonZero wasteLocal and sustainable materialsLocal & sustainable foodSustainable waterSustainable transport

Natural Habitats & wildlifeEquity & Fair trade

Performance Framework for

Local Authorities:

National

Indicator set

Stronger communities:NI 7 environment for a thriving third sectorChildren & young people:NI 116 Proportion of children in povertyLocal Economy:NI 151 Overall employment rate (PSA 8)NI 152 Working age people on out of work benefits (PSA 8)NI 166 Median earnings of employees in the area

Environmental sustainability:NI 188 planning to adapt to climate change (PSA 27)NI 192 % of household waste sent for reuse, recycling and compostingNI 193 municipal waste land filled

Local Economy:NI 170 Previously developed land that has been vacant or derelict for more than 5 years(if community asset transfer, community land trust)

NI 4: % of people who feel they can influence decisions in their locality (PSA21)NI 7 environment for a thriving third sector

Stronger communities:NI3: Civic participation in the local area (PSA15)NI 4: % of people who feel they can influence decisions in their locality (PSA21)NI 6 participation in regular volunteeringNI 7 environment for a thriving third sectorNI2 % people in area feel that they belong to their neighbourhood

Environmental sustainability:NI 188 planning to adapt to climate change (PSA 27)NI 192 % of household waste sent for reuse, recycling and compostingNI 193 % of municipal waste land filled

Stronger communities:NI2:% people who feel that they belong to their neighbourhoods (PSA21)Safer communitiesNI 23 perceptions that people in the area treat one another with respect and dignity

Indicators of

Progress

Range of large, medium & small enterprises producing goods and services sustainably.

Level of transition from informal to formal sector.

Range of stable and growing sub-sectors, some established, others responding to new demand

Range of social and private actors in enterprise

Local investment and re-investment opportunities

Local multiplier effect of businesses (i.e. up and down stream local money flows)

Level of household expenditure spent locally.

Level of local government and schemes budgets spent locally

Local (re-) use of waste, energy and resources

Level of resource efficiency

Degree of adverse social impact in the community.

Degree of adverse environmental impact in the community

Use of human assets (skills, knowledge, experience, motivation and can-do spirit)

Level of financial assets (investable resources, access to credit)

Knowledge assets (including business & market info & advice services)

Physical assets (good natural, transport, utilities, communications, work and trading spaces) – which incorporate key environmental, economic, social and personal well-being dimensions

Nature of and uptake of fiscal instruments, incentives & schemes.

Public bodies’ demonstrated ability to listen and act on the community’s expressed desired outcomes reflecting these in master-planning and budget setting

Level of co-production in the design and delivery of public services.

Degree of all sector co-ordination & mutual respect, consensus and shared vision

Responsiveness of economic development partnerships to community priorities for sustainability & action

Responsiveness of business to support sustainable local economic development

Public and private body level of volunteering in informal support networks within community

Number of active social entrepreneurs, social enterprises and local voluntary sector organisations.

Propensity of individuals & groups in the community to continue to identify issues & opportunities, and take action

Volunteering from within and by the community

Ability of individuals & groups to work together & resolve conflict

Political voice, space, and equity given to community sector

Access to knowledge, contacts, reciprocal networks, resources & funds to make choices and act effectively

Engagement in debate, shaping the continuing debate, taking control & action

Level of recycled materials

Land-fill rates attributable to local business and the community

Community, business and individuals awareness & consideration of triple bottom line impact of decisions

Mobilisation of under-utilised resources within a community – through resource sharing mechanisms

Level of renewal energy use locally

Biodiversity indices Level of

restoration / creation of green infrastructure

Level of community access to green spaces.

Availability and uptake of sustainably sourced goods and services.

Level of investment in ethical funds.

Degree of linkage between community and outside

Diversity of actors in the network: action focused, strategic, connectors

Access to knowledge, contacts, and reciprocal networks

Responsible Micro Enterprise

Positive Local Money & Resource Flows

Assets Base & Enabling Environment

Public Sector & Large Business Responsiveness

Community & Civil Voice Capacity

Environmental Sustainability

Interdependence

Actions Support responsible micro-enterprises and start-ups through coaching and networks

Community-based access to finance

Examples: Attract

appropriate inward investment

Support social enterprise and social entrepreneurs

Irrigation workshop – developers / community

LM3 study of development

Household expenditure study

Examples: enhance local

sourcing by existing businesses and government schemes & programmes

Link local people to local jobs

Channel local consumer power to buy local

Recycle ‘waste’ and produce local energy

Economic literacy eventsExamples: Support enterprising

behaviour. Skills matching & training

opportunities / apprenticeships

Create intermediary financial institutions including micro-credit

Create affordable community workspaces

Create sustainable community-owned assets

Carbon-neutral physical asset development

Physical regeneration including decentralised energy generation, zero carbon housing - retrofitting existing and new build

Incorporating personal well-being into building design criteria

Irrigation workshop – developers / community

LM3 study of development

Examples : Sustainable forward

commitment procurement Examples:enterprising

thinking / behaviour / approaches

Support partnership Support for facilitation &

brokering skills Support legitimacy to

community plans & visions

Encourage local business to have larger positive impacts on the economy

Develop local and regional networks of local and mainstream agency support

Irrigating large inward investment projects.

Economic literacy eventsExamples : Council’s Green

champions networkExamples: Support community

leaders & community organisations

Promote consensus building & planning tools

Provide access to knowledge, technology, case studies, best practise, contacts and funds

Actively using policies such as the Sustainable Communities Act

Domestic energy generation / energy saving

Carbon-neutral development schemes

Examples : Sustainable homes (HAB) Waste reduction and

recycling of household waste

Intention to implement warmzones programme

Examples: Re-engineer supply

infrastructure: energy, transport, food, waste.

Water recycling solutions. Community re-cycling

schemes Support local access to

knowledge of ethical investment funds

Support local access to ethical consumer information.

Supporting co-operative enterprise models

Supporting development of responsible business support networks.

Supporting community to community ethical trading initiatives

Communities engaging in the global interdependence debate.

Tools & Resourc

es

support models & basic business literacy

Networking existing entrepreneurs

Social enterprise support agencies

Balanced scorecard

Coaching based business support services e.g. BizFizz

Business networks and mentoring

Self-employed mutual

Plugging the Leaks Sustainable

Commissioning Model

Procurement Cupboard

Social Audit, LM3 Buy Local

campaigns, directories and loyalty cards

Local cash machines

Intermediate labour markets

Bulk utility purchases

in schools scheme - learning to lead

Asset transfer models Reimagined High Street Street markets Lending circles and credit

unions Intermediate Labour

market e.g. apprenticeships

CDFI tools Timebanks Community Land Trusts

Broker relationships between community and strategic partnerships

Common Purpose round tables

Irrigating inward investment

LM3 Participatory budgeting Consensus voting Business networks and

mentoring

Passion finder workshop Coaching support Unltd, Ashoka fellowships Planning for Real Community Planning

Handbook Power, Citizenship and

Democracy tools ActionAid Reflect Organisational

Transformation tools Timebanks

Our sustainable Neighbourhood

Eco- footprinting Balanced scorecard Environmental Impact

Assessments Environmental

management systems Ethical consumer guides Ethical investments Organisational eco-

mapping Energy Supply companies Grid exchange Climate change democs One planet living

principles

Eco-footprinting Young co-operatives Just change trading Forestry standards

Council and provenance schemes

Unique Social enterprise network model

www.oneworld.net

Proposition 1

It isn’t how much money you have going into an area that counts, it’s how you use it.

Flow

Money flows in

Money entering the economy

Money flows out again

THE LEAKY BUCKETMoney leaks out of an

economy in many different ways

Knowlsey study (2001): only 8% stays put

Cornwall study (2001):

£1 in supermarket = £1.40

£1 in veggie box = £2.50

Prince Charles circulating money

Dependence and independence

The circulation of blood

Proposition 2

Not all economic resources are monetary.

BizFizz

BizFizz network map

Marsh Farm

Keeping the money flowing

Plugging the leaks

Proposition 3

Innovative local institutions matter.

Evergreen co-operatives

Cleveland

Mondragon

Evergreen again

Evergreen principles

• The new co-operatives that employ local people.

• Redirecting the spending power of the local hospital to launch them and underpin them.

Avoiding supplicant status

“Some men see things as they are and ask why. Others dream things that never were and ask why not.” George Bernard Shaw

… local pride

Find out more…

New Economics Foundation www.neweconomics.org

Plugging the leaks www.pluggingtheleaks.org.uk

Local money flows www.lm3.org.uk

BizFizz www.bizfizz.org.uk

Evergreen www.evergreencoop.com

Louisville business alliancewww.keeplouisvilleweird.com