The Idea of Localisation

Here is a note on my views of localization and why it is an effective way of achieving a sustainable society.

I welcome reader’s comments on this.

Vision: Communities thrive on resilient exchange of local goods and services in sustainable ecosystems for their overall well-being.
Mission: Enable social transformation towards more localized economy through regeneration and conservation of ecosystems and creation of local green jobs

Why go local?
Many reasons,
a. Learning is a feedback process. Behavior would modify if we receive feedback on our actions in relatively short time. Eg. While driving a vehicle the speedometer provides a feedback, similarly the fuel gauge also provides a feedback where we can take proactive steps to refuel in time. On these lines if our daily actions start providing us with feedback it will help us to be aware of the consequences our actions would have and affect behavior modification. Hence, it is important to collapse the space time between cause and effect. This is not possible if distant actions affect remote communities and ecosystems much beyond the temporal and spatial boundaries of the people living in those places. This delay creates blindness and hence restricts their learning process and awareness towards the consequences of their actions. The large delay involved between the unsustainable consumption practice and its impact on environment could very well close the window of opportunity where proactive actions could be taken to recover the situation or adapt to it. Thus it is important to go local and as much as possible have a close loop economy where what goes comes back in relatively short time. This could enable a self-governing system.
b. Complexity needs to be managed and harnessed. Tools which help us analyze data and make sense are good to understand situations which we don’t know. But at least here we are aware that we don’t know. Hence, it can be known through use of methods, tools, technology etc. But what happens when we don’t even know that we don’t know? The current situation of climate change, ecosystems degradation, governance issues, and economic uncertainty is interrelated, interconnected and interdepended in nature. I am not very sure how the tools which we use to understand complicated stuff would work in this complex situation. Hence, if the world is banking on technology, mathematical modeling and other forecasting tools to help us understand what we don’t know then it could be a recipe of disaster. The world has become too interconnected for us to comprehend its mischievous nature. Thus we need to decouple and start working with subsystems. We have to first make it manageable and then harness the complexity involved in it. Thus, going local is more manageable to develop models of change which may get adapted when the time comes.
c. Many subsystems make up the entire system. Top down approaches for development and policy often get disconnected with the local context. Hence set of best practices does not account for local diversity rather it relies on standardizing practices and one size must fit all type of approach. Rather a bottom up approach which self optimizes itself over a period of time would ideally take into account the local diversity and priorities. Policies and practices evolving from ground could have more acceptance and endurance as compared to top down planning.
How to go local?
a. Local but not isolated. Going local does not imply cutting ourselves from the external environment. It does not imply boycotting or living on isolated territories. In fact 100% local would not allow for risk transfers to take place through exchange of resources. Thus, it is only advisable to have semi closed economy where local substitution takes place for goods and services which are consistent with local priorities and are feasible in the near term.
b. Import substitution. Participatory appraisal would be the key for deciding on what to substitute, what resources are required for that substitution to take place, what their state is and how to maintain or achieve the desired state.
c. Green jobs. In most likelihood the state of local ecosystem and ecosystem services would be below the threshold for their sustainable consumption. Thus, it could very well be the case where regenerating and conserving ecosystems becomes the immediate action and people, institutions engaged in these activities earn their livelihood by providing their services. These could also be termed as local green jobs. It is of utmost importance that they earn through regeneration and conservation of ecosystems since this would provide them immediate incentives instead of motivating them for long term anticipated benefits.
d. Local currency. If green jobs are to be paid then a local revolving fund where the medium of exchange is not rupee but a local currency which cannot be used outside the locally decided boundaries but can be used for purchase and sale of local goods and services can be established. This initial infusion would then keep revolving within the community through exchange and transaction of local goods and services. But we will have to put more thought on the design of such a system.
e. Building credibility. Going local may not be the solution to all the problems and that’s not the idea of localization. It has to be seen as a systemic response to the multiple stresses of resource depletion, climate change and macroeconomic oscillations. The objective is to establish a proof of concept and test our assumptions in a safe manner. Most of our learning would come from failures and the pedagogy would evolve as we keep experimenting. Hence, the project should be done in the spirit of experimentation and not to prove success. We should seek to build credibility of the approach/concept and enhance our own understanding in an evolutionary manner.
f. Safe fail approach. It is only ethical that the size and nature of interventions should be such that even if they fail they don’t hurt the community or cause long term damage. They have to be small, diverse and must be developed in participatory manner.

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3 thoughts on “The Idea of Localisation

  1. Jada Thacker March 10, 2016 / 12:56 am

    Have you given long and serious thought about why “we” don’t already operate in the localized way you advocate? You are advocating a different economic world, and there are reasons that world does not already exist. Those reasons must go away for localization to be realized. What would that require? What would the consequences be? Do you know? It’s a fair question.

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    • Mihir March 14, 2016 / 5:10 pm

      Jada, very valid questions. There is no one answer to it. Many historical events set up in non linear trajectories has led to where we are today. I can only provide my understanding of some of it. I think discovery of fossil energy led to an eruption of trade. Material flows increased and comparative advantage was evened out due to exchange of goods and services. This led to the foundation of globalization and global economy. Including fiat currencies which replaced gold and then gold standard. Then the evolution of debt based money. However, as standard of living went up the quality of life (more offlate) has gone down. Its getting worse. We must get back to land, learn to live within the means. Of course there will be negative consequences of closing up the economy, at any scale. But the price of not going local and staying global in my opinion would be catastrophic. More on this when I hear from you.

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