Last Monday I suggested large corporations reduce wages and use fractional reserve banking to extract value from the local economy. Today I cover why the local economy is important as an alternative to the neo-liberal economy.
Builds Community
The local economy builds community by developing relationships within a neighbourhood. Does anything increase community in a neighbourhood more effectively than the local economy? What are the alternatives? Community and possibly faith related activities? Most community activity is for particular groups with shared interests; parents of small children, young people, the elderly are perhaps the most common. These activities exclude those who do not meet their criteria. Whilst there can be community forums for all residents in a neighbourhood, these will be occasional meetings. A strong local economy will be where the neighbourhood mixes and can do so for several hours most days of the week. It is trade and other transactions that take place in a space everyone recognises that most effectively builds community.
Marketplace
The Local Economy as a marketplace at the centre of the community is a natural focus where people can meet friends, share experiences and encounter new activities. The place for voluntary activities is in the marketplace. It makes sense to plant what you’re doing in the place where people pass by. Community development needs to focus not so much on projects based in designated community centres, as participation in the already existing economy. We need imagination to do this. How can local traders take part in community development? Using online and offline methods how far could traders collaborate in building their trading centre as the heart of a distinctive community? How can traditional community activities be a part of the local economy? Are there projects, eg a community café that might support local traders by drawing more people into the area?
Employ Staff
The local economy is where small businesses employ and support staff. I remember my father’s small business and the struggles he had to find and retain good staff because he could rarely pay them enough. He was a lifelong socialist and mortified to find himself on the wrong side of the unions. The reality is many small businesses in the UK struggle to pay the living wage.
Small Traders
The local economy is where small traders are in business because they are passionate about what they are doing. Whilst they would be delighted to generate more money than they need, many are content to continue to do what they enjoy with a low-income. If they can generate enough income, the strengths of these businesses are in the business owner’s vocation.
Experimentation
The local economy is diverse with many small businesses and so will see rapid turnover. People will have confidence to try new things and will move on after a few years for many reasons. But a robust local economy will survive the failures. A small business closing will not destroy the local economy in the same way the closure of one major business.
Identity
Small businesses together contribute to making an area distinctive, a place to visit simply because it is good to be there. The big retail corporations have made town centres up and down the land practically identical. Now they are pulling out, leaving loads of empty shops no-one can afford. Meanwhile small shops in the suburbs or in small towns can do well. Where the rates are low and reputation draws people, small businesses can provide specialist stores and services. It helps if there is a major attraction but it need only be a park or a riverside walk.
Conclusion
Perhaps none of this is new but it is radical because the local economy rarely features in the practice of development workers. There are exceptions but a systematic community development approach to the local economy is overdue.
I’m hunting online for community development approaches to the local economy. As I find stuff I will share it. Do let me know if you are aware of blogs or websites about the local economy.