Tools for Local Economy

Local economic structures such as community Credit Unions, LETS (local exchange trading scheme), CSA (community supported agriculture), Co-ops, social firms, community businesses and permaculture, stop resources being syphoned out of the local community into the coffers of large companies. These structures also offer the possibilities and practicalities of a more community-based and sustainable way of working. Work and ways of working have a enormous impact on the environment through such things as materials, energy use, transportation, waste production and pollution.

Local community economies attempt to produce what they use, and use what they produce. The self-reliance that is generated from these activities empowers communities to take more control of their lives and environment. In working towards self-reliance community members gain a greater understanding of the local natural resources and begin to realise that the soils, water and forests around them are indispensable to their quality of life - this leads to more sustainable use and management, as people become more directly responsible for the consequences of their actions. Pollution, landfill and erosion become more real to them.

Community banks or credit unions (CUs) are a first step towards community self reliance and away from the dependence on governments and corporations. CUs are savings and loan schemes operated by the community members who use them, and offer affordable credit to their members. They usually offer loans to members at lower than bank interest, and encourage people to save regularly even if it is only a small amount. Community CUs invest money in community development projects and the majority of the investments is then returned to the community.

LETS are local community-based networks in which people exchange goods and services without using money. Instead of money LETS use 'community credits' - people earn LETS credits by providing a service and can spend their credits on whatever is offered by other people in the scheme eg childcare, transport, food, trade services or home repairs. All LETS schemes are different, and members trade a diverse range of products and services. Traditionally LETS systems have operated by distribution of a directory of services to members. Currently there are moves to distribute a directory of services to members through online bulletin boards and discussion groups.

CSA or community supported agriculture is another alternative that allows consumers to directly support people who grow their food. Through this system, consumers are guaranteed a steady supply of organic produce, while the supplier no longer has to struggle to compete with farms that are growing with chemicals. CSAs usually comprise one or two organic growers and members pay up front for a given period thus assuring the grower a buyer to give a reliable and sustained income.

Permaculture means permanent agriculture and more broadly permanent culture. Its aim is to bring human populations back into a sustainable relationship with their environment, and it offers a very clear vision of community self-reliance that is realistic and achievable.

Social firms give priority to people who would find it especially difficult to find alternative employment eg people with learning disabilities for people with a limiting medical condition.

Community business are owned and controlled by people in the community, and provide a facility or service that is of benefit to the community. Any profits are used to strengthen the business or provide further services to the community.

Co-operatives come in different forms depending on their aim eg housing co-ops, worker co-ops, marketing co-ops, and food co-ops. They all operate according to the following principles;