An Action Plan for Building a Living Economy in Syracuse

Local Matters Local Matters 20082008

MissionVision

StrategiesObjectives

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, Systems Thinking, Financial Engineering and Whole Systems Design

Creating wealth in our community by:• Aligning incentives• Promoting local ownership• Building relationships• Increasing the flow of information

TOOLSTOOLS

Business Associations

Local/Sound Currency

Community Ownership/Cooperative

businesses

Slow Food/CSA/Sustainable Agriculture

Land Trusts & Real Estate Cooperatives

Circles/Neighborhood Stock

Corporations/Exchanges

Community Databank

Bring it All Together

Jargon, Lingo, Mumbo Jumbo and Other Important Concepts

Vocabulary & FrameworkVocabulary & Framework1. This is OUR vision, not THE 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.

“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

FeaturesFeatures

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

BenefitsBenefitsFor Producers

• Economies of Scale• Purchasing Power• Manage Redundancy• Supply Chain Integration• Performance Feedback• Customer Loyalty• Improved Profitability• Competitive Pricing• Join Marketing/Branding• Build Social/Financial

Capital

For Consumers• Easily Identify Local

Firms• Improved Pricing• Relevant Goods &

Services• Better Jobs• Higher Incomes• Reputation Networking• Enhanced Real Estate

Values• Reduced Travel

“An opportunity for producers and consumers to sit down at the table and figure out how they can help one another.”

-R. Steiner

Possible OutcomesPossible Outcomes

Local Business Directory & Maps

Coupons, Gift Certificates, Currency

Redeemable at Participating Firms

Joint Ad Campaigns

Rating/Review System

Online Store/Catalog

ExamplesExamples

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

What is money?

What IsWhat Is Currency? Currency?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

Principles of Local CurrencyPrinciples of Local Currency

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

Types of Targeted Types of Targeted CurrenciesCurrencies 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

Who’s Got Your Back?Who’s Got Your Back?

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

ExamplesExamples Berkshares Colls Cash Ithaca Hours Totnes Pound Chamber Bucks Burlington Bread More:

http://www.smallisbeautiful.org/local_currencies/currency_groups.html

BerksharesBerkshares

Backed by the federal dollars 10% discount Who really benefits?

Colls CashColls Cash

“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.”

Que Bono: Who benefits?

Cooperative BusinessesCooperative Businesses Cooperative Federal CU South Side Food Coop

“Who’s your farmer?”- Catherine Austin Fitts

Slow Food in Our PlaceSlow Food in Our Place

CNY CSA Grindstone Farm Wiley Fox Farm Syracuse Grows

Who’s earth is it anyway?

ExamplesExamples

Jubilee Homes Forest Row (Berkshires) Land Trust Indian Line Farm (Berkshires) (1st

CSA in USA) Champlain Housing Trust (Burlington

VT)

ChallengesChallenges

Must show community benefit if tax exempt status

Housing: obtaining mortgages

Do you know 12 people you trust with your life?

Investment CirclesInvestment Circles

Westcott Series 1 Circle 1 Can we buy stock in a local organic

farm? Can we make money on it?

One Format – Many ReasonsOne Format – Many Reasons

Book Club Investment Club Support Group Rising Out of Poverty Movie Club

Improving the flow of local goods, services, and information.

Taking the Community PublicTaking the Community Public Overlaying a new social order on existing laws and customs

Using Wall 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)

Community DatabankCommunity Databank

No one of these ideas will have a large transformative effect

Together They Re-Write the Together They Re-Write the RulesRules Dudley Steer Iniative

Financial Permaculture Associative Economies (R. Steiner)

Transition Towns http://www.transitiontowns.org/

Mondragon

An Action Plan for Building a Living Economy in Syracuse