www.localfutures.org

byAnna White

Around the world, there is a growing movement topull back from the relentless march of corporate globalization by re-rootingeconomic and social activities at the community level. From the burgeoningpopularity of farmers' markets and food co-ops to the revitalization of communitybanking, people are organizing themselves to reclaim the economyfrom large profit-driven corporations and instead build sustainable, localalternatives.

While the term ‘localization' has never gainedpopular currency (perhaps because it is so easily misunderstood), it is worthconsidering a broad definition for this trend towards small-scale, community-orientedbusinesses. In Localization: AGlobal Manifesto, Colin Hines defines localization as "aprocess which reverses the trend of globalization by discriminating in favor ofthe local". It is important to note, however, that this does not mean"walling off the outside world" through nationalistic protectionism(see Micahel Schuman, Going Local:Creating Self Reliant Communities in a Global Age). Nor does it mean creatingcommunal autarky, with self-sufficient groups cutting themselves off from themonetary economy. International trade, travel and cultural exchange wouldcontinue, but locally-controlled, diversified economic activity would reorientproduction and service provision towards meeting the needs of the communityfirst.

Why Localize?

Individuals and organizations who are alreadyworking to strengthen their communities and local economies are doing so for amultitude of reasons. This is not an ideologically driven movement thatfundamentally rejects the global in favor of the local, nor is it based on oneblueprint solution or economic model. Rather, it is an organic processmotivated by a number of interrelated factors.

Economic globalization has gradually increased thepower of multinational corporations and ‘too-big-to-fail' banks, not only overthe means of production and distribution of goods and services, but also overthe entire democratic and social process. In light of the recent financialcrisis, where governments spent billions oftaxpayer dollars on bailing out the banks that were partlyresponsible for causing the crisis, the  overbearing influence of thecorporate and financial services sector has never been clearer.

In response, people around the world are moving toreclaim local control over the economy through alternative business practicesand banking. Campaigns such as Move Your Moneyaim to revitalize community banking so that finance is redirected towards localneeds rather than speculative profits and bonuses. Alternative businessstructures such as cooperativesand community-supported agriculture also encourage local ownership andproduction, thereby closing the divide between owners and workers or producersand consumers upon which the corporate model thrives.

A growing awareness of the ecological impacts of aglobalized, fossil-fuel dependent economy is also inspiring people to ‘golocal'. With the twin specters of climate change and peak oil looming, peopleare recognizing an increasing need for localized production and distribution inorder to build a viable alternative to the current environmentally destructive,export-driven model. Projects such as Transition Townsand Ecovillages are largely motivated by a belief that sustainable livingrequires resilient, diversified local economies. Many of the strategies adoptedby these communities are not new; community gardens and local currency schemes,for example, have long been used to ensure local resilience.

For many people, the motivation to rebuild localeconomies goes beyond practical concerns about the unstable and unsustainablenature of the globalized economy. It is rooted in a deep dissatisfaction withthe lifestyle and values promoted by a system obsessed with efficiency,competition and consumerism. Re-rooting economic activities at a local leveloffers a way to rebuild the community ties that have been eroded by a tendencytowards competitive individualism in society. In the wordsof David Korten, author of Agenda for aNew Economy: From Phantom Wealth to Real Wealth, the broadergoal of a localized economy is to shift "its favored dynamic fromcompetition to cooperation, and its primary purpose from growing the individualfinancial fortunes of the few to building living community wealth to secure thehealth and well-being of everyone."

Promoting Small-Scale on a Large-Scale

Currently, the shift towards the local remains afringe, grassroots process, made up of small-scale initiatives as diverse asthe cultures and environments in which they are taking place. As HelenaNorberg-Hodge argues in her contribution to The Caseagainst the Global Economy: And For a Turn Toward the Local, forthese efforts to translate into a wholesale shift in the mainstream economy,they must be accompanied by policy changes at both the national andinternational level.

With politicians pandering to the interests ofcorporations in the never-ending pursuit of economic growth, policy support forlocal economies remains near to nonexistent. Many government policies, such asensuring the availability of cheap fuel, liberalizing markets, subsidizingagribusiness and bailing out the big banks, essentially act as a form of corporatewelfare in support of large-scale, profit-driven multinationals atthe cost of small-scale community ventures. The same is true at theinternational level. Agreements under GATS and the World Trade Organization bargovernments from discriminating in favor of the local, all in the name of freetrade and the logic of economic competition.

Yet if economies are geared towards meeting localneeds first, rather than becoming ever more efficient at producing goods forexport-oriented trade on international markets, the logic of competition and‘comparative advantage' flies out the window. The only question that remains ishow to untangle government priorities that currently favor of big business andglobalized finance, and to gain political and popular public support for a morediversified global economy geared toward localization. In order to build a newparadigm for development, one that empowers communities and works within theecological limits of the planet, the rules of the game need to fundamentallychange.

‘Going local' offers a way for people to push fortransitional economic alternatives from the ground up, but individuals,communities and civil society must come together to form a powerful politicalmovement demanding that the necessary shift toward local empowerment takesplace through national and international policy measures. As multiple andinterrelated global crises reveal the socially and environmentally destructivenature of the current globalized economy, the time for such a movement hasnever been more propitious - an opportunity that we all must make the most of.

Further Resources

BusinessAlliance for Local Living Economies

Go Local -Yes! Magazine

The E. F.Schumacher Society

Move YourMoney

The New RulesProject - Institute for Local Self-Reliance

TransitionCulture

AnnaWhite is the editorial assistant at Share TheWorld's Resources. She can be contacted at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it