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cooperation

counter argument for “Stimulus,” growth and employment

Original by jan Lundberg at Culture Change.

It is not clear where we are headed in terms of a society impacted by ecological destruction and the end of globalized consumption. I for one am not sure I want to see the result. However, as things are not so bad now compared to where they seem to be heading — with too many mouths to feed and no social safety net or ecological capacity up to the challenge for avoiding big pain — I continue to soldier on, so to speak. I try to serve the greater good while I worry about my own survival and that of my loved ones. I also have a good time when I can, but things are getting weirder for me as they seem to be for most of us.

I keep in mind my former career-training as an oil-industry analyst and my generalist knowledge gained, in order to try to make sense of our changing, swirling world. It’s what I learned after leaving the industry and government that ultimately allowed me, I believe, to find out more or less fully what is going on, and thus feel I can offer ideas on what needs to be done. That is not to say I know everything or am prepared for any direction the human experience may take. But some things I know for sure from experience and meditating on the forces of both history and the universe.

Predictions

In the 1980s I was making widely reported gasoline price and supply predictions. After leaving industry I made more interesting predictions. In 1991 I wrote in the Spring 1992 edition of Population and Environment: A Journal of Interdisciplinary Studies, that the U.S. socioeconomic failure would be worse than the Soviet Union’s collapse, because we were so petroleum-dependent compared to the Russians who on the household level were growing their own potatoes. Through the 1990s I predicted collapse of the U.S. economy due to the coming global peak of oil extraction, in our Auto-Free Times magazine which became Culture Change. I have also predicted an eventual Ecotopian outcome, even in the U.S. that I’ve jokingly called the United Paved Precincts of Amerika.

I have learned that the kind of economy and social structure we have been living under is lacking in any sound foundation for long-term continuity. In fact, our survival is threatened by our present system. The political solutions that have been allowed to circulate are really economic band-aids that do not threaten the power structure. This is a prime reason it is so hard to predict where we are going to end up as a people. Our culture and Western Civilization are so threatened from within — the system’s own contradictions and failures — that collapse prevents us from imagining in much detail what kind of new (or traditional, close-to-nature) culture or society can be around the corner. Likewise, technology worship and clinging to material things hold us back.

For my whole adult life I have yearned for and worked for — except when I was mostly serving corporations — a better world that left war, greed and pollution behind. The paradox is that when one wants fundamental change enough to take action and look deeply at the obstacles, the positive vision is tempered by unpleasant realism and truth that others may call negative or doom-and-gloom. But the sum of positive alternatives — to ecocide, war and unequal treatment — is in one’s heart and not suppressed everywhere at all times. Here I leave the style of first-person writing and lay out the rest of my argument.

People are currently their own worst enemy. Some are removed from caring about themselves or others, and they are motivated to hold the power to enforce the status quo. They manage to keep the majority of people, who are not aggressive or creative, under control by various means. One way is to convince people that being able to buy things means freedom, although for 99% of our evolution as a species we lived in a natural way so as to use freely what was at hand for survival and for the good of the tribe and “relations” (other species). Another way to control people is through divide-and-conquer tactics with a large measure of fear generated. Hence, we have a fairly obedient population that allows astronomical disparity in wealth. The frogs in the pot are starting to boil to death, but now we at last have a black frog who croaks really well and means well, but he represents change-lite.

The “Obama Stimulus” is not all bad, just as there are some good government programs. However, it is time to question the feasibility of really reforming a doomed system built on lies, exploitation and separation from nature.

Workers as the key to the problem

Workers are enablers of the system that exploits them and kills them. Workers “earning” their paycheck and material wealth that serves to destroy the ecosystem are dutiful dupes of authoritarian, ruthless rulers who control not only wealth but institutions and public information. Workers are not all of one mind, and many are reluctant workers who would rather be relaxing or doing something to directly benefit themselves and their family. But enough workers have bought into the ideas that jobs are necessary and that it is acceptable or inevitable to work for others — in order to get nowhere but the eventual grave after a stunted life deprived of fulfillment.

No one dares call today’s worker a glorified beast of burden, for we have “progressed” and overcome the bad old past where things were more cut- and-dried. This mistake or inescapable conclusion in logic (and conclusion of one’s life) means that the adherents of more jobs are the actual problem with humanity and the ecosystem today, whether the adherents are workers or capitalists. Another way to put it is that our enemy is merely lack of imagination and of love for one another.

The social policy course of employment, which is the apparent easy way out of recently added stress, versus the course of rejecting the system (and living under the radar, ethically or no), is dominant, and correlative with the deteriorating state the species finds itself in. At a time when the failure of mega-finance and debt is so clear that no one has a certainty of future well-being, it should also be clear enough to generate doubt in the entire system that is so clearly ailing and teetering. The approach of more of the same, to prop up the existing system instead of create a better one that’s a major departure from the present one, is insanely dangerous.

The Stimulus assumes the system will respond to it and go back to growing. When we look at the weakness of the system and see what the permanent loss of cheap energy and pristine nature have to offer, it should be obvious there’s no return to growth.

The idea of growth is diametrically opposed to stability. So stability has been redefined as growth, which is physically impossible over time on a closed system called Earth. Because growth cannot go on forever, those advocating it are really the forces of short-term gain for greed. To claim that growth helps people goes with attempts to stave of problems relating to overcrowding in relation to resource limits.

It is only when people
(1) finally question the existing system’s ability to care for everyone (which it never could) in the long term, and
(2) when people reject the ridiculousness of endless growth, and
(3) they take control of their own affairs to assure their local environment meets basic needs (instead of working for a corporate entity to buy things from strangers), will the true economic problems and ecological crisis be dealt with.

So it must be with different eyes that we see developments now signaling the end of growth. For example, the cutting of 16,000 jobs at Sony, and 4,000 jobs at Microsoft, need to be seen as good news. (What should be much more troubling is the estimated 95,000 agricultural jobs to be lost in California during 2009, due mainly to drought.) Although the workers are displaced, they have stopped producing machines and gizmos that warm the globe through electric use that then become toxic junk for the landfills due to questionable recycling. The idled workers, largely ignorant of ecology and energy, may be waiting for more work of the same kind while unwilling (or at a loss) to work for themselves as full members of their own communities.

The world is faced with global unemployment rising this year by more than 50m from baseline 2007 levels, according to the International Labour Organization, a UN agency. The agency also spoke of an additional 200 million people going into lower-paid poverty. (These calculations are based on the stronger corporate economy of over a month ago.) There is probably no solution for this in terms of new jobs opening up in the traditional sense. However, if these people can somehow obtain food, they can shift to the kind of work that benefits themselves and their own communities while safeguarding their ecosystems. And it is not “them” at risk; we are all going to affected in the accelerating depression and petrocollapse.

The economic crisis is overdue, as the WTO and various capitalistic bubbles delayed the once normal business cycle of recession. Now the system is going down fast. The workers and non-workers of today will figure out a way, although with huge casualties due to lack of preparation for the real world.

Rather than argue over the present system’s ability to come back and allow its proponents to offer more of the same — using the veiled claim that it’s good for families to be dependent and helpless — it is time to imagine that a better world is possible. Local food production and caring for a region’s water supplies are just two features of what needs to happen now, and ultimately will happen. The doubt one may have over the timing, and how weak we may be to start over as a saner society, confuses the issues as much as the ongoing suppression of better ways of organizing ourselves. Cooperative arrangements and sharing are anathema to those suffering most from material insecurity: those who must own unlimited wealth. As long as these sociopaths can continue to hold or control positions of leadership and manipulate the masses through media and other institutions — as well as through fear and divide-and-conquer — then the weirder will be our daily lives as the pressure and uncertainty build. Recognizing this can help get us on task.

It is time to unshackle ourselves from the machine, to stop allowing sociopaths to dominate our world and start deciding ourselves what kind of world we’d like. This collapse is a great opportunity, if we see it as such and begin to consciously create a cooperative reality to fill the vaccuum that is being created. No point stressing about what is falling down, it has to come down to make room for the new.

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local currencies – replacing scarcity with trust

Francis Ayley established over a dozen local currencies in the UK before moving to the U.S. He contrasts our standard, scarcity- and debt-based money system with local currencies in which “there’s always as much as you need.” Local currencies like his Fourth Corner Exchange issue money when members trade goods and services. Communities with local currencies will be less affected when recession or depression hits the mainstream economy.

http://www.fourthcornerexchange.com/

A Peak Moment TV video.

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co-operating our way through transition

A recent article in the UK’s Guardian entitled Supermarkets? No thanks, tells us about a current wave of local food-buying cooperatives in the UK.

Having spent most of my adult life working for Catalyst Collective and volunteering in many roles for Radical Routes, I thought I’d post here a little about food co-ops, but also about the role that co-ops could possibly play through peak oil transition and in a post carbon world.

This is a weekly food shop, cooperative style – a model of food distribution where neighbours work together to take control of their local supply chain. The system is simple: find a supplier, buy in bulk and collectively cover the costs. Smaller co-ops will only buy what participants have ordered, whereas larger organisations operate as markets or even set up their own shops. Some of these “community” co-ops invite customers to become members. You pay a nominal fee to be able to shop from it, or have a say in how it is run. Others are more informal and open to all. There are also “workers’” co-ops, which are often much larger organisations, where paid employees share all key business decisions.

The concept, of course, is far from new, but it’s proving increasingly popular. “Interest is definitely growing,” says John Atherton of Co-operatives UK, an organisation that supports cooperative enterprise across Britain. “We’re seeing rising numbers of buying groups and community shops. It’s a trend that is set to continue.”

The motivations are many: fears about food security; food inflation; the power of supermarkets; the bruised image of capitalism; a lost sense of community.

Across Britain, food co-ops are sprouting up in school halls, community centres, farm sheds or even your neighbour’s front room – anywhere, in fact, where rent is free.

“I use the term ‘trust trading’,” says Dan Dempsey, manager of a project establishing food co-ops in Wales. In essence, he says, it’s about a return to traditional routes of trade: reconnecting farmers with communities, and countryside to cities; paying a fair price and avoid markups by middlemen.

This is a great idea, and I have been involved in the formation of several similar food co-ops. Ours started with a meeting of neighbours and friends, where one of us donated a back room (or in one instance their living room!) and we all contributed £10 or so to get our first order with a wholefoods co-operative. That was the motivation for us, in Hull, there were no decent wholefood shops, so we pooled a few quid each, and our labour, registered a worker co-op / compant structure, and ordered from the catalogue. Once a month the delivery would arrive, and a few of us would sort it all into smaller sacks, work out prices – we added 10% so the organisation would accumulate reserves and have its own capital.

There are several ways to run a ‘food co-op’ and several legal structures possible, if you decide to go down the legal structure route. On the most basic level you could do without the formality of a legal structure, and simply buy in bulk collectively and from suppliers that fit your ethics, although most large wholefood wholsale co-ops won’t sell to unregistered groups, as they feel this undermines local wholefood shops.

Or, as we did in Hull, you can register a workers coop, which is a basic company limited by guarantee, similar to many charities ie not-for-profit structures. The difference between a worker co-op company and a normal company is that employees, as defined in the rules, are the members and directors of the company. So there are no seperate shareholders reaping profits from the company purely because they have invested money. Those who do the work own and control the business, so it is effectively turning capitalism on its head. And of course, as you the workers are the owners and govern the activities of the business, you can include whatever rules you would like, regarding the activities of the business, whether it makes a surplus and what happens to it. I know of one coop that donates some of its income and time/skills to support eco-living projects in the area, and I would really like to see more small local coop businesses set up with the intention of supporting non-economic projects in their areas.

Unicorn Grocery , in the Guardian article, is a worker cooperative based in Manchester UK.

But, I think that most of the other groups in that article are food co-ops or consumer co-ops, where the people who buy from the co-op are its members, and get to either make the decisions for the coop at general meetings, or elect a management board to manage the day to day running of the coop. Most consumer coops also give their employees membership and more say in their own employment terms etc than conventional companies. Some of these coops only sell to members, while others are open to the public generally but offer perks to their members or discounts. The biggest consumer coops are The Co-op chain of food stores, CIS (insurance) and CWS (which is one of the biggest farmers in the UK). Many radical co-operators would argue that the Co-op Group have lost their way, and have neglected their membership base in the pursuit of competing with conventional supermarkets, and this may be true, but the Co-op is still better than most shops, and there is a lot of scope for activists to get involved in the Co-op to push it towards more ethical and loca behaviour.

In recent years, several consumer co-ops have been set up to save village post offices and shops, and because the shop is owned by the people who benefit from it, they tend to survive or even succeed where conventional businesses fail.

Another option is community coops, where a need is perceived by a group of people (beyond shops and consumers) and a project is set up, to be owned by the people that use the facilities. Examples of this are London Action Resource Centre:

A collectively run building providing space and resources for people and groups working on self-organised, non-hierarchical projects for radical social change. The resources of the building include meeting-space, library, shared offices, a roofgarden, banner and prop-making space and an action information area. If you’re interested in helping out with LARC, booking a meeting-space, or otherwise using the buildings resources, please contact us at the address above…

And Falmouth Green Centre:

Falmouth Green Centre is a community enterprise promoting sustainability.

Projects at Falmouth Green Centre raise environmental awareness and encourage community participation. They included the waste wood project (now closed) which re-used timber to manufacture wildlife habitat boxes and garden furniture, and a nursery project (still thriving) growing and selling organically grown herbs, wildflowers and native trees.

The grounds of the Falmouth Green centre operate as a community garden and feature a wildlife & woodland area, organic plots and an orchard. Regular practical volunteering activities take place on Mondays. The work of the centre supports social inclusion, providing volunteer opportunities and training for local people including the long-term unemployed, mental health users and people with special needs.

So far, so good. Worker coops, consumer coops, community coops. Each of these structures can be used to set up something useful, local, ethical and to help us build the world we want to see, while educating others about the environmental impact of industrial civilisation and capitalism. In many ways, setting up a co-operative company is using the tools of capitalism to improve life for ordinary people. There is also the option of housing coops, where the tenants are the owners and directors of the organisation. Again, when the tenants of the accommodation get to make the decisions that affect them, life can be so much better for those tenants, and surpluses generated from rents could be used for the planting of trees, the improvement of the accommodation, the building or purchase of more accommodation to house more people in decent & affordable housing, or rents could even be reduced!

So far I have been looking at ‘conventional’ coops and their uses in the normal world as is today. But, as we are seeing peak oil unravel the economic world, and the need for so aspects of society that have been pushed further and further apart via globalisation, I see that co-operatives could play a huge role in relocalising and real democracy. Democracy isn’t achieved through the ballot box, but by who owns and controls the infrastructures of their daily lives.

Co-ops could be set up to collectively own transport. In a local world we won’t all need a vehicle, but our coop could own a van, a jeep, a car and 10 bicycles, all shared by the inhabitants of a village or street. A coop could be set up to buy solar panels or wind turbines to power a village. A coop could own a rotovator or tractor, that members can use when they need to. Or a biodeisel coop, where several growers donate a plot of land to grow sunflowers or maize to turn into deisel to power collectively owned tools.

It is unlimited. In the post carbon localised world we are going to need to share more, and coops could be formed to make the structure of that sharing work more smoothly, with terms and agreements made and formalised. Using consensus decision-making within co-operative structures we can learn who to make it all work, how to share and work together, because we have to.

I see co-ops springing up everywhere, fulfilling every kind of need, with a huge range of structure diversity and uniqueness, where the corporate landscape was one of monoculture, sameness and conformity.

The only limitations are the ones that are stopping the corporate monocultures and our imaginations. In many instances there may be little need of a legal structure, but I would argue that the co-op ‘movement’ has a lot of experience of meeting skills, collective decision making etc, that we can take what we find useful. In a local world every project or co-op will find its own right way, just as with permaculture principles you see what fits rather than forcing a mould to fit all. But co-ops have a history and sometimes it will make no sense to reinvent. While the world still has an economic system co-op legal structures offer much in the way of credibility (being a company strangely means you get taken seriously), limited liability so you dont lose your home if the business fails, clear cut definitions between what is the co-op and what isn’t, ability to pay wages etc. In fact a co-operative company is a legal person, and can do much that a real person can do. It is a ‘person’ that represents you its members, and exists solely for the benfit of you its members, and will do whatever you its members want it to. Basically you can use a coop to improve your life and the world around you, and at this time cooperative projects will be very useful to ease the transition into post peak oil world. I expect many things we take for granted, which are now arranged by govt or big corporation, will cease to function as the oil economy unravels. Small coop alternatives could take over.

Some more ideas, collectively run and owned:
orchards, local shops to sell members produce, farmers markets, power providers, water treatment, housing, healthcare, libraries, seedsaving, oil press…. anything in fact. The future is local and collective.

I do know of one housing co-op which is attached to a worker coop, where the tenants have a basic weekly income from the worker co-op even though not all tenants work for it, all profits from the worker co-op go to pay the mortgages of the housing co-op, tenants who work outside pay all their wages to the co-ops except theuir basic wage the same as the others, the co-op buys all the needs of the tenants who also get a travel allowance and clothes allowance amongst other things, the coop owns several vehicles and tools/workshops for use of the tenants. Basically everything is collectively owned, and all income is pooled, but the co-op takes care of all the members, even covering them all with private health insurance, and individuals receive allowances above their necessities so they have freedom tempered with responsibility to the community. It works.

For more information, CoopsUk registers co-ops, has paid staff to answer your questions, and is a membership organisation itself.
Radical Routes is a network of coops working for social change, and is connected to an investors coop, Rootstock, to raise funds to lend to its member coops.
Catalyst Collective is a coop that helps coops, and offers a far more affordable registration service for housing, worker and community coops.
Catalyst also has instructions on its website of how to register yourself as a co-operative company at Companies House, for the huge sum of £20. These co-op company rules can easily be modified to fulfill whatever other co-op objectives, and the worker coop rules have very wide-ranging objects, to allow the co-op to do whatever the directors/members wish. using the Catalyst models, perhaps modified, you should be able to set up whatever co-op project that is needed in your area.

I don’t know much about co-ops in the USA, but would love to hear from people across the atlantic, with information to share with our readers. I am sure the co-op option could be just as valuable in America. One idea is for people losing their homes to form housing co-ops to buy the homes from the banks to rent back to themselves – but I don’t know enough about US legal structures to know if this is viable, but I do know that there are a lot of co-operatives active in many areas of business in the USA. And there are many rural intentional communities, owned and run on a co-operative basis, many appearing like traditional villages from the outside.
Transition time is now, time to set up local ethical co-ops, to help us take care of ourselves?

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economic crisis and the poor: probable impacts, prospects for resistance

The previous article promised happiness after the economic collapse, while this article from by John Clarke at GlobalResearch is less optimistic. Even in the richest countries, surrounded by wealth and waste, a huge number of people live in abject poverty. Many do not have too much, and will not find happiness by managing with less.

Perhaps in the longterm the disparities will shrink, as the rich have less energy to use taking from the poor, and creating artificial scarcity by destroying communities, wilderness, and natures bounty. But in the short term many many people are going to suffer severe hardship from the impact of peak oil and the associated economic collapse.

Now that the crisis of the financial markets has become a crisis of the ‘real’ economy, it is obvious that those who already face poverty (or live on the edge of it) will be hit extraordinarily hard in the days ahead. Over the last three decades, social programs that served to partially redistribute wealth or limit the disciplinary power of unemployment on the working class were massively reduced. With this ‘social safety net’ seriously compromised, we can expect a rapid and deep process of impoverishment to take effect as the downturn unfolds. The scale and severity of this will pose major challenges but open up huge possibilities in terms of mobilizing poor communities.

In the last weeks since the crisis came to head on Wall Street and scandalous bailouts for the rich ensued, a question has been lurking in the background: who will pay for this crisis of capitalism? That the capitalists and bankers do not intend to pay is more than obvious. That workers and the poor face massive austerity is also very clear. However, in order for this to happen, those in power are going to have to impose their harsh ‘solutions’ and that will produce suffering and an anger that forms the basis for fighting back. I would like to look at how poor communities may be attacked and at some of the forms that resistance could take. I speak from the standpoint of someone who is active in anti poverty struggles in Toronto. In some smaller and more heavily industrialized cities, the situation is already further advanced but we may expect a deepening downturn to affect Toronto very seriously. In many smaller centres, systems of social provision are even more inadequate than in Toronto and many people facing conditions of poverty and destitution will be forced to head for the major centre out of necessity.

The Shredded ‘Safety Net’

In assessing the likely impacts of the downturn, the first important question to consider is the fact that ‘employment insurance’ (EI) has been so drastically undermined. If all that people have to turn to is the welfare system, they will face a devastating shock. EI, while it has highly restrictive rules, considers eligibility from the standpoint of unemployed status. Welfare, in contrast, is a system of last resort that can only be accessed by those on the very edge of destitution. Those with any other sources of income are ineligible by reason of the welfare means test. In conditions of rapid economic downturn, that will translate into a whole mass of people who are without work but who cannot even apply for income support until they have exhausted their savings. Once they have reached the required level of poverty, those who were previously working for living wages will be expected to make do with the degrading pittance that welfare provides. I spoke recently to a man who had just lost his job and wanted to know about accessing welfare if he could not collect EI. He was truly devastated to learn that his very modest bank account would have to be almost emptied before he could go to Social Services. As this kind of thing happens on a major scale, it will send a shock wave of indignation through whole communities.

However, even the miserably low income provided by welfare is not something we can assume will be available. The social assistance system is massively arbitrary in its actual implementation and municipalities have to foot the bill for part of it. Ontario Premier Dalton McGuinty has already made clear that local governments will face cost cutting measures in the months ahead and, in such a situation, it is to be expected that local welfare offices will engage in an intensified drive to deny entitlements by way of a covert process of improper denial. If the crisis becomes deep enough and caseloads reach a high enough level, the very viability of welfare provision will be called into question.

In fact, Toronto’s City Council has already set the stage for a disastrous situation to develop in the near future. Under Mayor David Miller and his progressive allies on Council, the City’s welfare reserve fund has been depleted to pay for day-to-day operating expenses. From a high point of $94.4 million in 2003, it has been taken down to a mere $8.3 million. This means that we are going into a major international economic downturn with the income support system of the largest city in the country ready to collapse at the first test. Aside from generalized demands for increases in welfare rates, we will have to be ready to fight for the very right of people to obtain even a minimum level of income support.

Nor can we forget that, for hundreds of thousands of low-income people, the undermining of social programs has meant that they must frequently access private charity in order to survive. If food banks and other such services face a big increase in demand, while finding it harder to bring in donations, the costs in terms of hunger and illness will be very great indeed. Food banks have become a de facto second layer of welfare provision that until now has partly concealed the gross inadequacy of social assistance payments and limited the spread of hunger. If they are overwhelmed, the resulting situation will be tragic.

We can expect other impacts in the area of municipal services. 180,000 public housing tenants in Toronto are living in buildings and units that are in a state of massive disrepair. Infusions of cash from Queen’s Park have been well short of the hundreds of millions needed to bring this huge quantity of public housing stock up to a standard that even meets legal requirements. In conditions of funding cutbacks, this process can only intensify. Already, despite a waiting list for social housing of some 70,000, City owned buildings are left vacant for want of resources to restore them to a level where they can be occupied. There are not a few buildings that have been neglected to the point where action must be taken soon if they are to continue to house people. The loss of public housing in conditions where growing numbers of people lack the means to pay rent in the private market would be a disastrous addition to the overall crisis.

Even before this downturn really takes hold, hundreds of thousands of low-income tenants in Toronto barely keep themselves housed and pay the rent only by going short on decent food. There are already more evictions taking place under McGuinty than during the Harris years. If jobless rates shoot up and income support systems are further restricted, an epidemic of economic evictions will ensue. Then, as the loss of housing drives people to seek emergency shelter, we see another situation where the course charted before the downturn has horrible implications. Toronto has taken up a relentless drive to remove shelters and services for the homeless from the central part of the city. At present, finding a bed for the night in the overcrowded shelters is a challenge for the homeless. An upsurge in destitution will mean more people trying to access a system that is already inadequate. There will be a great political reluctance to respond to this need. Not only will Toronto City Council want to minimize expenditures but it will also be loath to open facilities in areas it has recently worked to clear of the homeless in the interests of upscale redevelopment. Some of the fights we face ahead will be for the very right to find shelter and stay alive.

Marginalized Communities and the Crisis

It would be hard to overestimate the degree to which this crisis will intensify the abuses faced by precarious workers in the most exploitative and low paying sectors of the job market. The level of enforcement of the most basic legal rights for such workers has already sunk to the level of tokenism. A worker who actually receives the protections of the Employment Standards Act enjoys little enough but these protections are a dead letter in many workplaces. The payment of wages below the level of the minimum wage, failure to provide overtime pay, the disregarding of statutory holidays, blatant safety violations — all these things are widespread now. In conditions of rising unemployment, we may expect employers to intensify the abuses very considerably.

There is one ‘service’ that has been exempt from austerity and, indeed, has had money thrown at it to the point where its budget has swollen to unheard of proportions. That exception to the rule is, of course, policing. This institution and its repressive role will be preserved and pampered no matter how dire the fiscal situation in the period ahead. The role of the police in poor communities will be stepped up in conditions of worsening poverty and destitution. If we look at the history of the Great Depression, we can see how local authorities responded in that period to the explosion of homelessness that took place. The police were used to ensure that those without work and housing received a very clear message that they were unwelcome and should move on.

Over the last few years, the drive to clear the central part of the city of poor and homeless people in order to make way for the process of gentrification, has given the Toronto cops extensive experience in harassing and terrorizing people the merchants, developers and politicians would rather not have around. Toronto’s drive to remove panhandlers has been stepped up greatly in the last couple of years and it has provided the police with a huge training exercise in criminalizing a population and disregarding its most basic legal rights. As pressure on services and the level of visible homelessness increases, we can count on intensified police repression to be a key element of the attack that poor communities will have to respond to.

In every aspect of the unfolding crisis that I have pointed to, it is, very sadly, a given that immigrant communities will face a massively disproportionate level of attack. A few days ago, the Ontario Coalition Against Poverty (OCAP) office took a call from a Central American family who had applied to their local welfare office for a health related benefit. An official informed them that she did not believe they needed the benefit and threatened to make sure they were deported for making false claims. A Somali woman applying for the same benefit was told by another office that she should not expect such assistance because she was already better off in Canada than she had been in Africa. The impending drive to restrict social provision will have a racist, anti immigrant element that will shape and define it. With immigrant communities already disadvantaged and vulnerable, any movement of resistance to poverty will need to confront racism whether it is sanctioned officially and hides its face or it begins to come out in the open as expressions of political backwardness.

New Resistance, Broad Alliances, Major Demands

There is a danger that this crisis is going to unfold with such speed and severity that it will create, for a period of time, a numbed passivity in communities under attack. The most effective counter measure to this will be to establish, as rapidly as possible, practical models of effective resistance. Over the last years, OCAP has established a method of work that we have sometimes referred to as ‘direct action casework.’ This uses collective action to resolve the grievances of individuals and families who face the denial of social entitlements and other injustices. It was established with the methods of the unemployed in the 1930s in mind. Such forms of mobilizing could be developed on a very wide scale in response to the crisis.

If the welfare system tries to cut costs by denying assistance to people in need, then ‘mass delegations’ of the poor and their allies can be used to challenge such abuses. If emergency shelters offer less space than is needed to deal with the growth in homelessness, appropriate locations can be taken over to press demands and ensure people are not left on the streets. OCAP, on a couple of occasions, invaded the Provincial Housing Tribunal to temporarily prevent it from ordering evictions. These actions were modest political statements that only prevented a few evictions from taking place but, in a worsened situation with a rising capacity for mobilization, more serious forms of challenge to eviction procedures could be organized. A veteran of 1930s organizing in Toronto once told me that the movement of those days could pull out large crowds at very short notice to block the efforts of the authorities to put families out of their homes. Such actions, linked to a demand for a moratorium on evictions, might well be possible in the not too distant future. Locally based committees, mandated to mobilize in the defence of people in their communities could crystallize and develop a very dynamic life if a lead were given.

There is no doubt that, beyond defensive local community action, the period ahead will call for broad alliances and for major demands to be placed before those in political power. If measures of ‘economic stimulation’ are to be adopted, we must be fighting for these to be allocated in ways that meet the needs of communities. Not the least of these is the construction of truly affordable housing on a massive scale. The degraded system of federal unemployment insurance must be restored to a level that meets the needs of the unemployed. The undermining of social assistance systems by the Chretien Government in the early 1990s has left communities desperately vulnerable and federal resources must be used to reverse this situation. The Ontario legacy of Mike Harris, especially the 40% cut in the spending power of welfare income, is another area where movements must go on the offensive. It will take very much more than the McGuinty Government’s timid and dishonest measures of ‘poverty reduction’ to meet the need this crisis will create. At the municipal level, a fight will have to be mounted to ensure that access to vital income support and shelter services is not compromised by cost containment initiatives.

Stabilizing Capitalism or Anti-Capitalistm?

During this crisis, the priority of governments will be to stabilize capitalism at the expense of poor and working class people. Banks and auto manufacturers may be ‘too big to fail’ but laid-off workers and the communities they live in will be considered highly expendable. Measures of social provision will be freed up, not in any direct proportion to the amount of suffering that occurs but to the extent that a resistance is mobilized that poses enough of threat to force concessions from governments. In this regard, we go into this situation with a major problem on our hands. There is no generalized movement of social resistance in place and the potential components of such a movement, especially the trade unions, are in a severe state of demobilized passivity.

Nor is there any immediate sign that the impact of this crisis is changing that situation. As I write this, the Harper Government is successfully staving off defeat at the hands of a Liberal/NDP alliance, supported by the votes of the Bloc Quebecois for a period. Labour leaders are calling for this Coalition to form a Government and have been organizing rallies to press for this. If the Coalition does, indeed, take power next year and the impact of the crisis goes beyond its readiness to respond, the leaders of the very organizations that could lead a fight back may well be entirely opposed to mounting one. Instead, they will be focused on deal-making with ‘their’ Government and blocking the independent working class action that must be set in motion in the face of this crisis.

Still, the key to moving forward is precisely a working class movement that rediscovers what it is to fight back. Low-income communities and homeless people will play a very important role in such a movement and they may even give an initial lead as the crisis forces them to act out of a sheer need to survive. However, it is hard to see how a movement of social resistance can be strong enough without the labour movement, with its organizational resources and power in the workplace, coming into action. If union leaderships are not willing or able to respond effectively in the face of an attack of staggering proportions, a rank and file challenge is the only possible response. Individual locals with militant leaderships and oppositional groupings of trade unionists must link up with initiatives emerging from communities under attack. It is true that we are starting with very little that is organized on the ground but a period like this can create prospects very rapidly that might take years to generate in more normal times. Unless such an initiative emerges that can begin to organize resistance and to restore the capacity of our movements to fight back, we will be staring at the most shattering defeats imaginable. If we can offer no solutions to this crisis, the capitalists will solve it in ways we have reason to dread.

Finally, let me return to my initial point about determining who will pay for this crisis. This speaks not just to resistance in the poorest communities but to the situation of the broader working class as well. For decades now, our generally retreating movements have faced representatives of capitalism who have exuded great confidence. They felt that capitalism had won over those who might challenge it and that its victory was so complete as to represent the ‘end of history.’ Now, suddenly, we are seeing a system that is in profound crisis and whose political and ideological mouthpieces are much less self-assured. This crisis of legitimacy is an important element in the situation. Not only will it be possible to mobilize on the basis of demanding that the cost of this downturn not be paid by poor communities and the broader working class but growing numbers of people will be drawn to question the very system that has so obviously failed to meet their needs and offer them a future.

In poor communities, this crisis comes after a long process of pushing them down during the decades of neoliberalism. There is already anger and the realization that bad is going to get much worse will make large numbers of people look for answers. The issue is to demonstrate in practical forms of organized resistance that these worsening conditions are not unstoppable and inevitable. That is the starting point for a movement that can respond to this crisis and pose a bold anti-capitalist vision of what it is fighting for.

We see that the strongest defensive actions we can take, either now or after/during the collapse, is to grow our own food, cooperate and share. Regular meetings on a local/village/street level to look at what is happening and how people who live near each other can help each other to create some food security, share assets and tools, or even as simple as shared childcare could mean the difference between life and death for many. And everything you do now outside of the monetary system is an action that helps you live without capitalism, and helps to bring the unjust system down.

Simple decisions like who you buy food from (let alone going so far as to decide not to buy food, but to grow it yourself) are world-changing decisions. You can buy from a neighbour or local grower/farmer, who you visit on your bicycle, or you can buy from a supermarket, grown by anther huge company with all the pesticides and fertilisers, transport from the other side of the world, moncultures, peasants pushed from the land of their ancestors, loss of diversity, low wages, advertising policies, government lobbying – the list of nasties that your purchase supports goes on and on….

So personal decisions to act without money are even greater world changing and enabling decisions.
The drive to monetise the world is what has gotten us into this mess. Resistance should include efforts to untangle ourselves from economics, and wherever we can we should be helping each other, and pooling resources.

Even if the collapse hasn’t affected you yet, if you start living locally and with less shopping now, you will undoubtedly find that the crash won’t hurt as much as it would have done if you were totally reliant upon money and what it can buy. Start taking those steps now, maybe before you have to.

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Implementing Real Democracy

As the post ‘The Fallacy of Democracy’ discussed, the current form of government we call ‘democracy’ is deeply flawed to the point where it barely approaches meeting its own meaning – rule by the people. The Empire will always win, as no candidate proposing real change would ever be able to credibly run for any office or would be stopped by the elite. So how can we ever achieve a real democracy with people deciding their own futures, and how can this happen despite the overpowering nature of the current system? To answer this it’s necessary to analyse that current system and how it arose.

To put in the simplest manner possible, our governments only exist in order to stop the poor murdering the rich, the slaves killing their masters. If there was no government or official militia (police or armed forces), the huge number of exploited people would no doubt rise up and revolt and demand equality. To stop this from happening, from the very beginning the masters hired and formed militias with their stolen wealth, with which they kept the slaves orderly with the fear of these militias. This is how governments and nation-states start, as the militia and mediator between masters and slaves.

Eventually, as wealth became ever more concentrated by the rich, the governments make concessions to pacify the poor, such as social reforms, the welfare state, 8 hour days etc. Although seemingly revolutionary, these only serve to capture some of the crumbs from the table of rich to distribute to the poor. After a significant amount of time, the people even demand a say in how the government is run. This was a difficult crisis for the elite to manage, but one that was solved very cleverly – the people could vote for a few centralised ‘parties’, whose existence is only enabled with the permission and approval of the elite. This way it seems we have a democracy, yet in fact have very little say in the way things change. Candidate X may tend towards more concessions for the poor, candidate Y will favour concessions for the elite. The pendulum swings endlessly between the two, always ensuring in the long-term the middle ground where just enough wealth is sacrificed by the elite to pacify the poor but not too much so as to prevent the growth of their own fortunes.

With the odds so stacked against us in the current system, we have to create a new system in which to rewild in. But how do we avoid the mistakes of the past and lay to rest the hierarchical model of government?

It’s all a matter of scale. Beyond a certain number of people in a group (it’s been found to be around 200 people in many studies) it becomes impossible to know everyone in the group personally. As a result, in order for some sort of order to develop in decision making some sort of hierarchy forms to unify that large group. Unless this occurs on the basis of smaller sub-groups and delegation, this is the first step down a slippery road to domination and slavery based system of organising ourselves. An egalitarian society based on the unified group model will inevitably succumb to authoritarianism – every republic, however noble its first principles, will slip towards fascism as time passes.

The alternative is the tribe model, the model which has lasted for hundreds and thousands of years for many societies even today. In a tribe setting, each group will be below 200 people and so will contain very little hierarchy. A representative/facilitator character exists to co-ordinate the group in coming to communal decisions, and also in some areas acts as a delegate to a larger confederacy. In this ‘federation’ each group maintains its identity but could co-operate with neighbouring groups without being unified with them. This again serves to avoid hierarchy as much as possible. There is no core armed group acting as an enforcing militia – the entire group enforces decisions reached amongst itself. And most importantly there is equality, no persons become rich at the expense of others. This is the core principle to the continued existence of this system, and is why many tribes collapse when they come in contact with civilisation, as this foundation stone is infected and destroyed by our ego-based way of thinking.

How can we retribalise now though? It seems impossible to return to this way of living so far down the road of civilisation, and questions of population density and co-ordination of all these groups arise. Although forming a tribe seems like a difficult proposition, the same concept is at work when many people speak of recreating communities and community based living. However one might want to term it, small groups concerned with the local area they occupy are at the core of retribalising and rewilding. These communities can be as simple as a local residents association, a gardening group or similar. As long as it’s local and small, it is sowing the seeds for a new way of organising ourselves. As the economic, resource and ecological crisis begin to hit, it is our job to get these groups to take an ever increasing interest and duty in caring and caretaking for its local area. If many small communities do this, a network can form to take care of our own needs without relying on the current system and its government so much.

So here’s how to begin the implementation of real democracy: see governments for what they really are – mechanisms to keep us in our place; join and form small, local groups in your area with a concern for that area; create a group which for example takes turns to give a Permaculture makeover to each of your gardens and local area and swaps seeds, tools etc.; network with other similar groups and encourage their development; and finally consider alternative economies to support these new networks. This is a new and untested plan, but could eventually lead to the emergence of a completely different way for people to organise themselves outside of the hierarchical/slave system – a true democracy as practiced for hundreds of generations before civilisation.

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Local Currencies – Wörgl in the Great Depression

As the economic crisis deepens and it becomes ever more clear that we are heading into a depression, it is useful to study the previous depression of the thirties to learn from history. The most inspiring story of people coming together to overcome the troubles is the Austrian town of Wörgl, which in 1932 issued a local currency to complete public works projects with and encourage trade and employment:

The mayor, Michael Unterguggenberger, had a long list of projects he wanted to accomplish, but there was hardly any money with which to carry them out. These included repaving the roads, streetlighting, extending water distribution across the whole town, and planting trees along the streets.Rather than spending the 40,000 Austrian schillings in the town’s coffers to start these projects off, he deposited them in a local savings bank as a guarantee to back the issue of and a type of complimentary currency known as ‘stamp scrip’. This requires a monthly stamp to be stuck on all the circulating notes for them to remain valid, and in Wörgl, the stamp amounted 1% of the each note’s value. The money raised was used to run a soup kitchen that fed 220 families.Because nobody wanted to pay what was effectively a hoarding fee, everyone receiving the notes would spend them as fast as possible. The 40,000 schilling deposit allowed anyone to exchange scrip for 98 per cent of its value in schillings. This offer was rarely taken up though.

Of all the business in town, only the railway station and the post office refused to accept the local money. When people ran out of spending ideas, they would pay their taxes early using scrip, resulting in a huge increase in town revenues. Over the 13-month period the project ran, the council not only carried out all the intended works projects, but also built new houses, a reservoir, a ski jump, and a bridge. The people also used scrip to replant forests, in anticipation of the future cashflow they would receive from the trees.

The key to its success was the fast circulation of scrip within the local economy, 14 times higher than the schilling. This in turn increased trade, creating extra employment. At the time of the project, Wörgl was the only Austrian town to achieve full employment

By issuing a local currency whose value decays rather than grows as in the current system of virtual debt, the town could create a vibrant local economy despite the crisis.  As its value decreased and hoarding was counter-productive, if practiced on a wider scale it would promote sustainibility – the problems of growth can be avoided.  However, the state did not like the idea:

At this point, the central bank panicked, and decided to assert its monopoly rights by banning complimentary currencies. The people unsuccessfully sued the bank, and later lost in the Austrian Supreme Court. It then became a criminal offence to issue ‘emergency currency’.

Unterguggenberger was opposed to both communism and fascism, championing instead what he referred to as ‘economic freedom’. Therefore, it was deeply ironic that the Wörgl experiment was first branded ‘craziness’ by the monetary authorities, then a Communist idea, and some years later as a fascist one.

The town went back to 30% unemployment. In 1934, social unrest exploded across Austria. In 1938, when Hitler annexed Austria, he was welcomed by many people as their economic and political saviour.

By challenging the banksters that effectively control the front organisation known as the state, this small town’s success became an example of how to run our own affairs.  Sensing the threat to their power this could create if adopted by other communities, it was crushed.  The state would rather let its citizens become unemployed and impoverished rather than let them create their own reality.  As a result, fascism could sweep across the country as a ‘solution’ to the crisis, welcomed by the banksters as a way to tighten their control.

We need to learn from history – as the crisis worsens we need to set up projects like this in every community, village, town and city to take back the economy, and when the inevitable crackdown comes as we threaten the power of the banksters we need to resist and enact civil disobedience.  If we don’t, the banksters will continue to rule us and impoverish us, from taking our taxes in bailout plans in this ‘democracy’ (did we get to vote on this plan, or was it chosen for us?) through to outright fascism.

Something as simple as our local own currencies can diminish the banksters and states power over us – they knew it in 1933, and they know it today.  We can use money as a tool for dismantling civilisation, to serve people and planet rather than be its master.  I call on all local environmental groups – transition towns, climate groups, campaign groups etc. – to investigate setting up local currencies and credit unions and consider it a vital part of making our world a better place.

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how to create change In your community: finding or forming A local group

Living Locally & Creating Change

a great article at 1 green generation

Finding A Local Group

First of all, before you think about creating a new group of people, I encourage you to make sure you’ve taken a good hard look at what’s out there. You don’t want to reinvent the wheel if you don’t have to! If you can find an organization that is already working toward sustainability in some sort of way, it may be easier to try to create a project within their already established group, rather than start completely from scratch.

The types of groups where you might find local people who are interested in creating community-wide change include: disaster preparedness groups, peak oil, climate change and environmental groups (those working in your local community), gardening outreach organizations, programs that help fight homelessness, food banks, community gardens/allotments, neighborhood associations, block watch programs, neighborhood, city and town councils, city and neighborhood sustainability boards, youth programs, PTA meetings, community center events, earth day and other “green” fairs, city or town Department of Neighborhoods, native planting/invasive species clearing groups, local animal welfare societies, university campus groups,… the list goes on, but these are some things that I’ve come across.

Where Do You Find Them?

Subscribe to your local paper – either online or in paper form. Subscribe to your community paper or newsletter. Look through your local “goings on” paper, usually a weekly paper. Search online using Google, the phone book, The Relocalization Network, and Transition Towns.

Talk to people, ask around, call one organization and ask them if they know of an organization that is more what you’re looking for. Attend conferences, film screenings, fairs, and local meetings about things you’re interested in – and talk with people there. Ask local bloggers, follow links on websites, visit your city/town website for possibilities, and check out your local chamber of commerce.

But… What If There Isn’t Anything Locally?!

Forming A Local Group

Starting an organization is not particularly easy, but you may find that there just aren’t any groups that are doing what you want to do – nor working on what your community needs most. So go for it. Get like-minded people together. Get people with disparate areas of expertise together. Find people who can complement your skills. You may not know how to do something, but someone else you know (or who you could meet and get to know) may be able to do it!

Network. Bring local bloggers together, introduce yourself to people at your farmer’s market, attend your chamber of commerce (or city council and neighborhood council) meetings and feel out people who would be interested, announce a sustainability meeting at your church and ask people to come, talk with organic gardeners, slow foodies, knitters, environmentalists, whoever you can find that might be interested.

Then Set Up A Meeting!

Once you have a group of people interested, set a time, date, and location and publicize it! Email and call everyone. Put an announcement in the local newsletter, the community paper, and post fliers in coffee shops and other gathering places.

Include when, where, directions and/or a map, beginning and ending time, briefly what the meeting is, and whether or not people need to bring anything. And make it sound fun, worthwhile, and interesting!

When setting a time and date, try to schedule around other local events, sports, and holidays, and make sure to schedule a meeting after work or on the weekend days. If you are holding the meeting in a space where having kids is appropriate, do tell people it’s ok to bring children. If people don’t have to leave their children at home and pay a sitter, they’re more likely to come.

And make it easy. Host something small at your house, the local church, the local community center, a nearby park or community garden. You can make it a potluck. Or if it’s after dinner, you can provide just a few snacks and coffee and tea. Or make it a dessert potluck.

When the meeting time nears, make sure to email and/or call people to remind them of the meeting. If you have a limited time, don’t be afraid to set up a phone tree with people you trust.

What Do You Do When You Get People Together…

The First Meeting

First of all, if only a few people come to the meeting, don’t despair. That’s a few more people gathering about sustainability than have ever gathered in your community before. So make it worth everyone’s while, make people excited and motivated, find common grounds and enjoy one another’s company. And then get them to invest in the group, feel a part of it, and they will talk with other people who might be interested in coming next time.

Secondly, if all your first meetings do is get people together talking and feeling like they are not alone, that is great. That is more than most people accomplish.

But do set out with at least a rough schedule and a list of things you want to accomplish – and let everyone know at the beginning of the meeting, so they know what to expect. A good ice breaker is to ask everyone to introduce themselves and tell a little about why they’ve come to the meeting (especially if it’s a small group). Name tags are also a good idea.

Make sure someone is greeting guests as they walk in. That person should be saying hello and introducing themselves, making people feel comfortable, handing them a nametag, and asking them to sign in with their phone # and email address. Don’t forget to get contact information so that you can make sure everyone stays informed!! If people are hesitant to give the info, tell them it’s to email them the meeting notes and the details of the next meeting.

Generally speaking, getting people sitting in a circle facilitates a more informal and discussion-oriented meeting. You want people to participate, and to become an active part of the discussion.

So, now you have people together and they have met one another. Next, it’s time to address some of the things you are interested in seeing in your community. Community gardens, educational seminars about sustainable living, motivating people to recycle, helping the impoverished in your community, fighting crime or graffiti, planting trees and creating more parks, overall community preparedness, helping local businesses become sustainable – whatever it is, bring it up and gauge people’s interest. Ask what others think are important, and what they would be interested in working on together. Make a list of priorities. (If there’s a chalkboard or whiteboard you can write these down, otherwise take notes.)

Engage people, let them talk and make sure to listen to what they have to say, let ideas become better with discussion, and also keep the conversation moving and productive (you don’t want people to lose interest and feel like their time is being wasted).

Make sure someone besides you is taking notes so that you can all remember what you talked about, and disperse those notes later in the week (via email, most likely).

Make sure to leave enough time at the end of your meeting to establish the next meeting time and place. Find out if the same time next month is good. And then THANK EVERYONE FOR COMING, sum up the meeting at the end, let everyone know how exciting it is to have everyone together, discussing these issues that are so important to the community.

As people leave, shake their hand, tell them you look forward to seeing them next time, that you liked their idea about xx, that you’ll follow up with them about the question they asked….

What To Do After The Meeting

Sometime in the next few days, send everyone an email: compile the notes, follow up on anything else you were supposed to do, and thank everyone for coming. Make it fun. And then remind everyone about the next meeting.

A week before the next meeting, make sure you remind everyone about it, and tell them how much you’re looking forward to it!

What’s In A Name?

A name of a group or organization is very important. It must be unique to your own locale, and it must be a name that people will be fond of, or at least a name that they won’t mind being identified with. Nothing too controversial – you don’t want to turn off people (and businesses) to the group before they even meet you. But descriptive enough that it’s clear what the group is about.

Some groups here include: Sustainable Seattle, Sustainable Capitol Hill (our neighborhood group), Seattle Green Drinks, Washington Toxics Coalition, Environmental Coalition of South Seattle, Northwest EcoBuilding Guild, NW Energy Coalition, Farming and the Environment, Bicycle Alliance of Washington… just a few ideas to put into your head!

So you can think up a name for the organization before the first meeting. That way you’ll be able to put a title on your fliers and emails. Or, you can give it a temporary name and then let the group decide what the name should be (probably not during the first meeting, but several meetings in). You decide, you can gauge how people feel about the name and see how it goes!

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ordinary human poverty

Another excellent post by Sharon Astyk.

The question becomes how do we turn this story into one where most of us can say “We were poor, but we had enough – just enough, but enough.” And where our kids may grow up not really realizing just how poor we were? How do we accustom ourselves to the ordinary human unhappiness (which, after all, isn’t unhappiness every moment, merely a recognition that most people aren’t happy all the time) that is our shift in wealth, without allowing ourselves to fall through the floor, into the deeper stages of collapse?

There are three answers to this. The first is to reduce your needs. I expect that for a long time, the stigma that attaches to any kind of poverty will keep many of us struggling to keep up appearances. We are likely to feel ashamed the first time we have to ask for help, ashamed that our clothes are no longer as fine, that dinner is plainer and that we now share our homes. The best way, I think to get over these feelings is to get over them in advance – to change your values as so many here have. Thrift shop clothes and patches should be sources of pride, symbols of your independence from industrial manufacturers. The food on the table – and the people who share it – are the point – not whether high-social value elements like wine and meat are present. The need to speak out against the culture that tells us that poor is dirty and bad becomes paramount – because the more resources we waste keeping up appearances the harder it will be to adapt.

The second is self-sufficiency of the kind most of us are trying to achieve. The garden, the sewing needle, the saw and hammer, the ability to make and repair, to grow and produce and nurture things – these are things that demonstrate, as Jeremy Seabrook has contended, the opposite of poverty is not wealth, it is self-sufficiency. None of us will ever be wholly self-sufficient – but to be able to say that it doesn’t matter if you can afford shoes this year because you can repair last year’s boots, or to not have to spend much of your money on food means that you have a much better chance of covering that emergency medical bill or the property taxes.

But these things alone are not sufficient. One’s self-sufficiency can be taken away too easily when we lose access to land. You can lower your standards to allow “poor but decent” but when we get to “filthy and rat infested” that’s not such a good idea. The only way to live in the world of ordinary human poverty is to live there in a world where your pocket isn’t picked constantly, where you aren’t the victim of endless resource conflicts, where your government doesn’t sell your future out. And the only way to be a nation of reasonably self-sufficient, ordinarily poor people living decently is this – to remember that the reason we use the word “ordinary” here is that there are a lot more of us peasants than there are of the powerful. The truth is that repressive governments, of the sort we have had and are rapidly entrenching are scary – but they never have enough troops, enough power to stand up against the unified dignity of those who are simply ordinary, and simply want enough. But that requires that we trust each other, that we work together, that we create the institutions of ordinary poverty, the ones that have fallen into disuse – Granges, Unions, Consumers Unions, neighborhoods, voting blocs, and larger groups that can be used to pull us together. These things too are ordinary and human – and it is getting to be time to build them.

Most of us have grown up in a ‘toy’ rich world, even the ‘poorest’ westerners who read this will have houses full of what is basically plastic crap. The ‘poverty’ that is coming for most of us is one of ‘things’ poverty, cash poverty, but not necessarily necessity poverty. Not if we prepare, embrace the changes, and do our utmost to form collective communities and cooperation with the people around us.

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credit unions and local currencies

We’ve lived so long under the spell of heirarchy – from god-kings to feudal lords to party bosses – that only recently have we awakened to see not only that ‘regular’ citizens have the capacity for self-governance, but that without their engagement our huge global crises cannot be addressed. The changes needed for human society to survive, let alone thrive, are so profound that the only way we will move toward them is if we ourselves, regular citizens, feel meaningful ownership of solutions through direct engagement. Our problems are too big, interrelated, and pervasive to yield to directives from on high.
- Francis Moore Lappé, Time for Progressives to Grow Up

We’ve covered plenty of topics relating to the ‘problems’ facing humanity, and some talk about solutions. Local food growing, in particular, is definitely necessary, and we have covered a few topics relating to organic growing and permaculture.

Now lets think about economics. A large part of our problems is the fact that financial elites have too much say in how our societies are structured, who is in power via government, what we see in the media, and what kind of ‘developments’ manage to secure finance and so actually get off the ground. This is not conspiracy theory, it is simply that we live in a world where ‘money makes the world go round’ and so, people with more money have more power and influence over the rest of us.

This situation is not going to change over night, but there are two little ideas, that work very well on a local level, and can give local people a bit of extra control over their own local economies.

Credit Unions

Credit Unions are local co-operative financial institutions, owned and controlled by their members. Basically you set one up with your neighbours. You each pledge to save/invest a few quid each week/month. Normally you set a threshold, over which members have to save, before they can start borrowing from the union.

Wikipedia says that credit unions are:

A credit union is a cooperative financial institution that is owned and controlled by its members, and operated for the purpose of promoting thrift, providing credit at reasonable rates, and providing other financial services to its members.[1] Many credit unions exist to further community development[2] or sustainable international development on a local level.[3] Worldwide, credit union systems vary significantly in terms of total system assets and average institution asset size[4] since credit unions exist in a wide range of sizes, ranging from volunteer operations with a handful of members to institutions with several billion dollars in assets and hundreds of thousands of members. Credit unions nonetheless remain typically smaller than banks with, for example, the average U.S. credit union having $93 million in assets versus $1.53 billion in assets for the average U.S. bank, as of 2007.

We think that credit unions could be very useful in helping to rebuild local economies. We are going to need lots of new local infrastructure, and much of it, at least while resources are still available, will cost money. Borrowing from banks would entail high interest repayments, while grant funding either isn’t available for this kind of project or would involve huge amounts of bureacracy. What better idea than to start saving with your freinds and neighbours into a fund which will then be available as loans to individuals, or to small local businesses to benefit the local people.

There are legal regulations relating to credit unions and there will be some paperwork involved. But there are also support organisations to help getting them set up. They are not-for-profit organisations. That means that although the union aims to make a small surplus from its activities, making a profit (to pay shareholders dividends) is not the primary purpose, which is in fact to benefit its members. Perhaps you could even include an ‘improve the local natural environment for the benefit of members, local people and nature’ clause?

Not-for-profit status and the need for a surplus

In the credit union context, the term “not-for-profit” should not be confused with “non-profit” charities or similar organizations.[24] Credit unions are “not-for-profit” because they operate to serve their members rather than to maximize profits.[25] Credit unions are not charities or similar organizations that rely on donations; to the contrary, credit unions are financial institutions that must turn what is, in economic terms, a small profit (i.e. “surplus”) to be able to continue to serve their members.[26] According to WOCCU, a credit union’s revenues (from loans and investments) do need to exceed its operating expenses and dividends (interest paid on deposits) in order to maintain capital and solvency[27] and “credit unions use excess earnings to offer members more affordable loans, a higher return on savings, lower fees or new products and services.”[28]

Usually it is easier for a person to obtain a credit card or a loan from a credit union of which he is member than from a bank. This is especially true for people who have no credit or whose credit has been hampered. The fact that a credit union makes surplus also helps such people build credit or re-establish it. Credit unions are a good way of securing a credit card in order to build your history.

United Kingdom Credit Unions

In the United Kingdom credit unions are regulated by the Financial Services Authority, or FSA. UK credit unions are classified under two types: type 1 are the smaller CUs while type 2 are larger. From November 2006 many type 2 CUs began offering their members debit card accounts which enabled CU members to obtain funds from any Link ATM. UK credit unions do not offer cheques as these are generally being phased out in UK financial transactions.

Credit unions in the UK now offer a wide range of services to their members; from direct debits to payroll deductions, from being able to send standing orders from their accounts to paying members bills to providing cheaper insurance facilities.

In the U.K. one of the benefits of joining a credit union is the life insurance CU’s provide their members free of charge. Also, if a member were to die then their loan value is wiped out with no further charge to the member’s account or their family; further, in many cases their savings with the CU are doubled and passed to the next of kin. As recent history has shown, with the Christmas ‘savings club’ Farepak going bust in 2006 (very unfortunately un-regulated, and not protected by UK law) and hundreds of Farepak customers losing all their savings, the real alternative of a regulated and protected CU is a able to provide both good savings rates and very affordable loans, in the safe knowledge that all CU customers savings are protected, if the worst happens.

Currently there is a government financial initiative mainly being operated by credit unions to bring financial services to the economically disadvantaged members of society. One aim is to significantly reduce the influence of door step lenders (and illegal “loan sharks”) where a £300 loan over 30 weeks may involve paying back around £450; a credit union loan would typically require paying back around £325.

The Association of British Credit Unions Ltd has a website, which includes much info about credit unions in the UK and a searchable database of credit unions. There may already be one in your area, that you can join and encourage to start making loans in relation to peak oil and climate change.

The first step, then, is to contact ABCUL, find out if there is a credit union in your area, and whether it will serve your purposes. If not, then start looking into how to set one up.

United States Credit Unions.

In the United States, credit unions have 86 million members, which is 43.47% of the economically active population.[33] U.S. credit unions are not-for-profit, cooperative, tax-exempt organizations.

The National Credit Union Administration is the federal body overseeing credit unions in the USA. There are also state organisations responsible for credit unions in some states. There is a lot of information on the NCUA website, including the ability to find credit unions near you. Again, check out any local unions, assess whether they can help, or not.

To be honest, it may be worthwhile setting up new small credit unions to financially support you and your neighbours in your transition efforts, because then you will be in control of a small local organisation and your endeavours won’t get swallowed up within a larger organisation.

LETS or local currency.

This is another great idea. Wikipedia says:

Local Exchange Trading Systems (LETS) also known as LETSystems are local, non-profit exchange networks in which goods and services can be traded without the need for printed currency. In some places, e.g. Toronto, the scheme has been called the Local Employment and Trading System.

LETS networks use interest-free local credit so direct swaps do not need to be made. For instance, a member may earn credit by doing childcare for one person and spend it later on carpentry with another person in the same network. In LETS, unlike other local currencies, no scrip is issued, but rather transactions are recorded in a central location open to all members. As credit is issued by the network members, for the benefit of the members themselves, LETS are considered mutual credit systems.

Because they are local, they vary greatly in how they operate and the ‘rules’. We consider that the most fair way to run them would be if everyone’s time is valued the same, because an hour of anyone’s life is simply that an hour, regardless of whether the skills are valued more highly in the monetary system. We have found that people tend to bring civilisation’s values into LETS and credit unions, but especially LETS schemes, where an accountant may feel his time is more valuable than that of say a babysitter. We disagree, but obviously it is up to you and your group to decide how to run it. Thats the joy of local, every scheme will differ from every other, increasing diversity, rather than a central body dictating the rules.

How LETS works
Local people set up a club to trade between themselves, keeping their own record of accounts.
A directory of members’ offers and requests—goods, services or items for hire, priced in local LETS units—is compiled and circulated.
Members use the directory to contact one another whenever they wish. They pay for any service or goods by writing a LETS cheque or credit note for an agreed amount of LETS units, or by exchanging printed LETS notes.
If applicable, the credit note is sent to the LETS bookkeeper who adjusts both members’ accounts accordingly.

Since its commencement over 20 years ago, LETSystems have been highly innovative in adapting to the needs of their local communities in all kinds of ways. For example in Australia, people have built houses using LETS in place of a bank mortgage, freeing the owner from onerous interest payments.[citation needed]

LETS is a fully fledged “monetary system”, unlike direct barter, with LETS members able to earn credits from any member and spend them with anyone else on the scheme.

In a perfect world, we would all do things for each other out of love, without the need to ‘keep score’, but we must remember that we are coming from a competitive system, and many of us would find it hard to co-operate just for the joy of helping each other. We regard LETS schemes to be a useful transition tool, encouraging people to work for each other without financial rewards, but still with the ability to ‘pay’ each other and to even accumulate wealth of sorts.

Criticism of LETS

LETSystems often have all of the problems confronting any voluntary, not-for-profit, non governmental, community based organisation. LETS organisers often complain of being overworked, and may suffer burnout. Many schemes have ceased operation as a result.[5] Many of these problems can be overcome through effective community organisation and development.[citation needed]

LETSystems, whilst generally appealing to people supporting a general communitarian or environmental ideology, have in many places[citation needed] managed to successfully translate themselves as social welfare initiatives. There are far fewer systems that have managed to communicate and translate themselves into a local business initiative catering to locally owned small to medium businesses. This is generally considered to be an unfortunate weakness of LETSystems to date by the initiators, as they feel that LETS potentially has the capacity to allow small business to compete on a level playing field with larger national and transnational business corporations.

A number of people have problems adjusting to the different ways of operating using a LETSystem. A conventional national currency, is generally hard to earn but easy to spend. To date LETSystems are comparatively easy to earn but harder to spend. The success of a LETSystem is therefore determined by the ease with which a person can spend their LETS credits, and improve their quality of life by participation. Placing difficult arrangements or undue service fees in the way of LETS members will produce difficulties in the future.

Perhaps initially you and your neighbours could run a LETS scheme to help faciliate co-operation. You may find that over time, more and more of you simply help each other out without a using your local currency. But, also, you may find that as the membership grows your neighbourhood will start cooperating with other streets or villages, collectively, and using LETS to organise this. Ideally LETS schemes need local businesses to join so that real ‘goods’ can be ‘bought’.

LETSLink UK is the lead body supporting Local Exchange Trading Systems in the UK. Their website includes a page of regional links to LETS schemes. There may already be one near you that will fulfill your needs. If not, why not set one up. It could be a good way to start your neighbours working with you towards the aim of real community. LETSLink UK also supplies an information pack for a small fee.

LETS-Linkup is a strange website, but contains a directory of worldwide local LETS schemes. Heres the list for the USA.

Happy cooperating. These two systems are not perfect, and we regard them as transition tools, towards a free, egalitarian, cooperative, local future. You may find that groups set up in your area are too full of people who have brought civilisation and its heirarchies into the organisations (but maybe not!) If this is the case, think about whether they would be useful to your efforts of cooperation with people around you, and get a group of neighbours together to set up a new scheme. We will undoubtedly need a lot of differing ideas and networks as civilisations endgame plays out, and economic entities removed from the minstream financial system may actually save our lives or at least make them a little easier.

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love, schmove – just tell me how to build community with the guy who mows his lawn in his speedo!

Sharon Astyk talks about the reality of community for most.

How do you get started, if you don’t know your neighbors? Well, one way is to enter into existing community structures. Your community has them – Churches, synagogues, mosques, the PTA, the library board, the garden club, the local political parties, action groups for various issues, etc….

I think there’s a tendency to underestimate existing community structures, and to decide “oh, those couldn’t possibly be made to serve our goals” – but that is what happened, for example, during World War II – existing neighborhood associations, church groups and other community structures were brought together to work on one project. Often, there’s more interest than most of us would expect – for example, for years, I mostly kept my work and my synagogue life seperate, because I wasn’t sure how well they would overlap, and because I didn’t want to seem too pushy. Finally, I pushed a little harder to get some green stuff going, and what I’ve found is that there’s more enthusiasm than I would ever have expected, and I’m the one telling people to slow down ;-) . The moral of the story is that sometimes it is easier than you think it is to harness the power of institutions.

Or perhaps you do need to start something – there is no group that you can join. How do you get your neighbors together? Well, how about some food? Some music? Beer? Nothing builds community like inviting the neighbors over for some food. Start talking – and listening – to what people are thinking about.

Once you know what they care about, that’s the key to finding a big tent way to get to working together – instead of bulk purchasing quinoa, you need to think about finding something everyone uses – or someone else who eats sugar frosted loopies to share a bulk order with.

Remember, you don’t have to tell everyone everything. You can bring up peak oil and climate change, and when the neighbors say “well, Newt Gingerich says we have all the oil we’d ever want and that we’re approaching an ice age” – let it slide. It doesn’t really matter whether your neighbor is buying in bulk to save the planet or to save up for their Disney vacation – you are working together.

Sharing stuff is new to a lot of people – new things are hard. So make sure you keep trying. It might take five times to get an elderly neighbor to agree to let you pick up a carton of milk for her on your way home – the first few times, she might think it was polite to say no, or that you were judging her, or assuming something about her. It might take five times – or even ten – before she realizes you are serious.

Community can be hard work, and will inevitably involve a lot of compromise and tolerance. But, when the going gets tough it will certainly make life easier if you have common-ground and relationships with your neighbours, however different from you they initially appear.

We have been raised to live as seperate small household units – this way, corporations get to sell the same things to everyone, and communities can be a threat to established power structures. It ain’t gonna be easy to overcome your own prejudices, or those of the people you are trying to connect with, but it may well be very useful to do so. And sharing can be fun!

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