Monthly archives for June, 2010
Festival of Grassroots Economics
http://www.youtube.com/watch?v=yDrMkQFsQTQ
SF Community Congress Economic Development Summit
Hello progressive friends,
You’ve survived the mid-year elections and the annual budget crisis! Many of you have spent long hours developing revenue measures. Some of you have just returned inspired from the US Social Forum, ready to imagine that another San Francisco is possible! On Thursday July 8, 2010, we are inviting you to join community and worker organizations in building a progressive agenda to protect and expand economic opportunities for all San Franciscans.
This will be an important day building up to San Francisco's second citywide Community Congress in August – which will produce a progressive social, economic, and environmental roadmap. The "New Deal for the City" Community Congress is an exciting follow-up to the 1975 Congress that led to district elections and many other progressive gains. Since last Fall, members of the Council of Community Housing Organizations, the Human Services Network, Jobs with Justice, and numerous tenants rights, workers center, and environmental and economic justice organizations, have been meeting regularly to develop draft documents for the Congress. The principal goal is to develop a locally-actionable legislative and policy platform that we’ll encourage candidates for Supervisor (in 2010) and Mayor (in 2011) to support. This year's full Congress – including caucuses on economic development, housing, transportation, and health and human services – will take place at the USF campus on August 14-15.
You are all, in one way or another, important participants in community-based economic development (some of you have likely been playing a role already in this and other Congress working groups), and your participation in July 8's pre-Congress gathering is critical in order to discuss ideas, debate, and draft our economic development platform to bring to the August Congress. We need a strong turnout to create a strong progressive force for meaningful and lasting change in how – and for whom – the city works. We are inviting workers centers, small and back streets businesses, worker cooperatives, arts and cultural workers, urban agriculture, and students and low-wage workers: people and organizations that are key to a vibrant San Francisco future.
The attached framing document is a work-in-progress, emphasizing the critical role of the public sector as a major economic driver, with the responsibility to lead the city's economy, and on the importance of small businesses and cultural work that underpin other economic sectors. We believe the city should approach development in terms of economic opportunities for people who live and work in the city and who are most in need of dignified livelihood. We will discuss proposals for revenue and city budget reform that prioritize front-line workers, a municipal bank and city enterprises, labor standards, community jobs programs, green workforce development, arts and cultural economies, and light-industrial back streets businesses.
The July 8 Community Economic Development summit will be from 3:30 pm. to 8:30 p.m., at the SF Lighthouse Church (1337 Sutter Street @ Van Ness, San Francisco), appropriately located in the shadow of planned mega-development projects, where we will chart a different course for the future of San Francisco. A first working session will take place from 3:30 to 5:15, with a half hour break for light refreshments, and a second working session from 6:45 to 8:00. Please let us know by July 2 if you are planning to attend, or if you have any childcare needs (RSVP el_compay_nando@yahoo.com). Also, if you cannot make it, but someone else from your organization or from allied progressive organizations can, feel free to pass on the information to them. For updates, and to review and comment online on the full draft recommendations of the working group, please visit http://sfcommunitycongress.wordpress.com/
Thanks for your support and involvement,
Fernando
Fernando Martí
Community Planning Program Director / Project Architect
AsianNeighborhoodDesign
Neighborgoods
By Micki Krimmel
06.09.10
After a long discussion with my ex-boyfriend about his 8 year old son Evan and the perils of a childhood staring at glowing screens, I decided to do my part to encourage Evan to break away from the television to read more. "He loves the Harry Potter movies so surely he would love the books!" I thought. The first Harry Potter book is so popular, I knew for sure that one of my friends would have a copy Evan could read. I searched NeighborGoods and no one near me had it listed so I added the book to my wishlist.
Later that day, Jory logged into NeighborGoods and saw that someone in his neighborhood wanted to borrow Harry Potter and the Sorcerer's Stone. Happy to help out a neighbor, he promptly added his copy to his NeighborGoods inventory. I received an alert email and I logged in to request the book from Jory. We set a time to meet and a couple days later, Jory was ringing my door bell. He delivered the book and a sweet bonus - Jory brought me a bag full of fruit from his avocado tree! Jory and I spent 20 minutes or so chatting in my living room about his family, NeighborGoods, and our Los Angeles neighborhood, Atwater Village.
Since that first meeting, Jory and I are now friends on all sorts of social networks. We share stuff on NeighborGoods all the time, we share local news and deals at our favorite taco place with each other on Twitter, and we compete for mayorships on Foursquare. Jory and I are now neighbors in the true sense of the word. Through Jory, I've met several other Atwater Village residents and we all stay in touch online.
I returned the book to Jory a few weeks later. I don't think Evan read it. But thanks to the technology on our glowing screens, our neighborhood got a little better. I now feel much more connected to Atwater Village. I feel like I'm a part of the community. I feel connected to the people around me and the ground under my feet.
And that's why I created NeighborGoods.
---
NeighborGoods.net is the online community where you can save and earn money by sharing stuff with your friends. Need a ladder? Borrow it from your neighbor. Have a bike collecting dust in your closet? Rent it out for some extra cash! NeighborGoods helps you live better and more sustainably by saving resources and strengthening local communities.
NeighborGoods is currently in limited beta in Southern California.
The Central Bank of Ecuador Supports Complementary Currency Development
Fundación Pachamama and the Central Bank of Ecuador jointly organized a workshop on complementary currency systems that was held on June 3 and 4 in the headquarters of the Central Bank in Quito. Ultimately the goal is to develop new economic models for rural development including new exchange networks and alternative, complementary currency systems, which will help people in Ecuador get access to credit and promote local production, consumption and trade.
The workshop, called “Systems of Alternative Pay and Means of Complementary Pay,” was held to strengthen the conceptual understanding of the diverse methods of complementary currency systems and the key elements for implementing a system on a national level. In addition, the workshop aimed to explain the workings of a successful model developed in Uruguay (called C3U), and the advantages of creating and applying this system. Finally, the workshop aspired to establish work links between administrative organizations and Uruguay project architects with the Central Bank of Ecuador and Fundación Pachamama.
The first day was a planning meeting with personnel of the Central Bank; Javier Félix, advisor from Fundación Pachamama, and the invited participants from Uruguay; Fernando Cetrulo from Foundation STRO Uruguay and Enrique Baraibar, from the Direction of Development Projects of the Uruguayan Presidency. The workshop began with various presentations from the different projects of the Central Bank, discussing alternatives to economic policies with complementary payment means and compensation systems, and the C3U model. Conceptual input was given to widen the vision of those charged with the diverse projects of the Central Bank, based on the experience of peers from Uruguay.
On the second day, the workshop was opened to the public, including members from the Ecuadorian State, the private sector, non-governmental organizations, directors of Savings and Credit Cooperatives, and other organizations related to the Solidarity Economy, and university students studying economics in Quito.
The workshop achieved the planned objectives and culminated with the signature of a cooperation agreement between the Central Bank of Ecuador, Fundación Pachamama, the STRO Foundation, and the Direction of Development Projects of the Uruguayan Presidency, recognizing the importance of the development of alternative currency methods for the participating institutions. This agreement lays the groundwork for cooperation between all the participants for implementing alternative currency methods that benefit an improved distribution of wealth, employment generation, economic stability, and social development for Latin American countries.
http://www.pachamama.org/content/blogcategory/105/166/#9
2 Day Timebank Training at the US Social Forum
TimeBanks USA has teamed up with the Michigan Alliance of TimeBanks to present a regional TimeBanking Training for 2 full days on June 26th and 27th.
Why you should come:
These are tough times. Find the Wealth of your community and discover what it takes to rear healthy children, preserve families, care for the frail, redress justice, build community, sustain democracy, create inclusion and generate well-being.
What you can expect:
Expect to be informed, excited, and inspired. Expect to take part in TimeBank simulations, exercises and games. Expect to hear powerful stories of people who have made TimeBanking work for their communities and organizations. Expect to envision possibilities with people who are passionate - like you! Expect to be ready to take action, and for others to take it with you, step by learning step.
NEW!! A limited number of SCHOLARSHIPS are now available. Please click here to apply by JUNE 15.
Training Schedule: Detroit
Saturday, June 26
Session I: A Wealth of Possibilities, 9:00 a.m. - 12:30 p.m.
Participate in a Group Simulation. Apply the core principles of TimeBanking, and experience how individuals, groups and organizations earn and spend Time Dollars to match unused talents and resources with unmet needs.
Session II: Get Organized, 1:30 p.m. - 5:00 p.m.
Learn critical “must-knows” about TimeBanking, including developing membership and the key elements for visioning and planning a TimeBank.
Sunday, June 27
Session III: A Wealth of Experience, 9:00 a.m. - 12:30 p.m.
Meet members of the TimeBanks USA Ambassador Corps and other TimeBank practitioners from across the United States through a series of small group discussions. Hear their stories up close, and find out the many ways in which TimeBanking has been applied to meet different goals in different communities.
Session IV: Get Connected, 1:30 - 5:00 p.m.
Connect with others who share your interests or who live in your geographic area, and discuss ways to expand and strengthen your work.
Why do CUs oppose ‘Reasonable Fees’ in card payment amendment
A few days ago, Patelco sent the letter below to their members asking them to voice their opinion against the REASONABLE FEES AND RULES FOR PAYMENT CARD TRANSACTIONS amendment (original text). This campaign seems to be orchestrated at the state and national level.
What is not clear to me is why would Patelco, a credit union with less than $4 billion in assets would campaign against an amendment, which exempts card issuers with assets of $10 billion and less?
Carla Day pointed me to this article by Russell Simmons where he explains that this exemption is unpractical from an implementation standpoint.
The Unplugged
From Shareable.net
By Vinay Gupta
06.08.10
The author of this fiction, Vinay Gupta, is the creator of the Hexayurt, a real-life, inexpensive disaster relief shelter that embodies and anticipates many of the ideas in this piece.
A Video News Report from 2030....
Anchor: Touting their movement as a combination of the economic theories of Mahatma Gandhi and the political science of Buckminster Fuller, the Unplugged have now reduced the environmental impact of the United States of America by 8 percent over their 15-year program.
Opponents of the movement call Unplugging an unscientific and cult-like political movement, but proponents say that "Unplugging" was the best decision they ever made. Let's hear from Jack Houston, a former investment banker...
Cuts to video
[Screen opens to Jack Huston, a muscular early-40s New Yorker.]
Presenter: Jack, could you explain what Unplugging did for you?
Jack: Well, first we've got to cover briefly how Unplugging works. The core of the theory is that we can all live off the interest generated by our savings, or the profits from our investments, if we possess enough capital - and generations of Capitalists have dreamed of "getting off at the top" - making enough money to cash out of the workplace and live as they like for the rest of their lives.
Presenter: But what does that have to do with living in a housing pod in the middle of Oregon?
Jack: Well, it comes down to the nature of capital. Wealth stored as dollars was essentially a share in America's national economy - a credit note backed by the US Government. But Buckminster Fuller showed us that wealth-as-money was a specialized subset of Wealth - the ability to sustain life.
To "get off at the top" requires millions and millions of dollars of stored wealth. Exactly how much depends on your lifestyle and rate of return, but it's a lot of money, and it's volatile depending on economic conditions. A crash can wipe out your capital base and leave you helpless, because all you had was shares in a machine.
So we Unpluggers found a new way to unplug: an independent life-support infrastructure and financial architecture - a society within society - which allowed anybody who wanted to "buy out" to "buy out at the bottom" rather than "buying out at the top."
If you are willing to live as an Unplugger does, your cost to buy out is only around three months of wages for a factory worker, the price of a used car. You never need to "work" again--that is, for money which you spend to meet your basic needs. However, there are plenty of life support activities to keep you busy, and a lot of basic research and science to do. Unplugging is not an off-the-shelf solution, it's a research career!
Presenter: So tell us about your house over here? It looks pretty weird!
Jack: Unpluggers don't have our own manufacturing facilities for these yet, so we shop them out to fabs in Turkey. The shell is aluminum and aerogel, 50 percent collector panels, 12 volt appliance wiring, super-insulated windows with liquid crystal shades for internal temperature control. Heat comes from either a wood stove or a peltier solid state heat pump running off ground heat, depending on how much power we need. Cooling, similarly. We cook in the solar oven on the side sometimes, but mainly on woodgas or in the microwave.
The houses - or "Pods" as you call them - have a reputation as being "one size fits all poorly" but, in fact we found that 90 percent of people got on very well with one of three basic designs. The economies of scale made mass manufacture of those models more cost effective but people still do custom work for about one unit in ten.
We're working towards local fabs for a lot of this stuff now, but that's hard to organize without winding up with internal industries which run on grid power and commercial supply chains, both of which are no-nos for our way of life: you can't be an alternative if you still rely on the industrial infrastructure for your basic daily lifestyle needs. So we build the housing pods in Turkey as part of the "Final Purchase" process - where a person becoming an unplugger buys their home, tools and land, to support them and their family for the rest of their life, and then disconnects from the national economy.
It's not perfect. We're still using the resources of the industrial world to disconnect from it. But until we have green fabs for the collector panels and other necessities, it's what we have to do.
Presenter: Can you explain what this has to do with Fuller and Gandhi?
Jack: Gandhi's model of "self-sufficiency" is the goal: the freedom that comes from owning your own life support system outright is immense. It allows us to disconnect from the national economy as a way of solving the problems of our planet one human at a time. But Gandhi's goals don't scale past the lifestyle of a peasant farmer and many westerners view that way of life as unsustainable for them personally: I was not going to sell my New York condo and move to Oregon to live in a hut, you know?
Presenter: Ok.... with you so far.... what about Fuller?
Jack: Gandhi's Goals, Fuller's Methods, if you like.
Fuller's "do more with less" was a method we could use to attain self-sufficiency with a much lower capital cost than "buy out at the top." An integrated, whole-systems-thinking approach to a sustainable lifestyle - the houses, the gardening tools, the monitoring systems - all of that stuff was designed using inspiration from Fuller and later thinkers inspired by efficiency. The slack - the waste - in our old ways of life were consuming 90 percent of our productive labor to maintain.
A thousand dollar a month combined fuel bill is your life energy going down the drain because the place you live sucks your life way in waste heat, which is waste money, which is waste time. Your car, your house, the portion of your taxes which the Government spends on fuel, on electricity, on waste heat... all of the time you spent to earn that money is wasted to the degree those systems are inefficient systems, behind best practices!
Presenter: Wow! So tell us about the Humane Human Footprint.
Jack: The Human Footprint is simple: it's the share of the world's resources you can use without really harming anybody simply by existing. We call it the Human Footprint as opposed to the Inhuman Footprint. You take the sustainable harvest of the earth - the bounty we can consume without reducing next year's harvest or reducing the resilience of the earth in other ways - and your share of that is one Human Footprint. The earth's Wealth - its life-giving power - is like a trust fund split between seven billion humans and a gazillion other living creatures. That which consumes more than its share is defrauding all the rest of their right to life. And this isn't religion, this is common sense: if there are winners and losers, we're in a race for survival. If there are only winners, we're all artists, scientists, lovers and scholars.
I know how I want to live.
Presenter: So how close to your Human Footprint are you, Jack?
[Jack looks uncomfortable.]
Presenter: I've heard five times over is a typical number for Unpluggers...
Jack: Well, it depends how you measure it but yes, about that. I have three children, so my family footprint is about 11.2x HF but my personal footprint is about 7.3x. I'm working on it, though. It's hard to make the adjustment, and we only have a few tens of thousands of people at 1.0x or lower.
Presenter: So let's talk politics. Unplugging is also a political movement - you yourself are mayor of a township here, and your "town" is the local Unplugger population plus a few hold outs in ghost suburbs east of here. Why play at politics if all you wanted to do was drop off the Grid?
Jack: Because political assumptions wire everything. Building codes dictate how you can build, which dictates the size of your housing cost, which is the primary factor in your Unplug Cost. Our sanitary systems are greatly more effective than those of the Grid but, because we fertilize food with human waste after extracting what energy we can from it, some say our food isn't suitable for human consumption - even though, in fact, there is no scientific evidence what-so-ever of any disease organisms in the fertilizer stream. Just the idea of fertilizing using processed human waste freaks people out, even though it is how humans always lived. And this pattern repeats for water, our medical practices, all of it. You would think that preventative medicine was a crime!
Because we are different, the existing legal infrastructure works against us at every hand and turn. To create change, we have to play politics. But we are careful to simply use our small-but-growing clout to open doors for our chosen lifestyle, not to close doors on other people's choices. We aren't ecostalinists. Gandhi's approach: voluntary enlistment in the army of truth, if you want to think about it that way, has proven to be the only effective model of political change which is consistent with all of our shared values. We embrace some parts of Gandhi's model more than others - as with Bucky - but you can't argue with the historical success of his approach: India, South Africa, America, Poland, Mexico... the list goes on.
Presenter: Even my kids have an Obey Emperor Gandhi bumper sticker. What's that about?
Jack: It's an Unplugger joke. We call Gandhi "Emperor Gandhi" because in our way of looking at things, he was the political leader of India - a network of Kingdoms - and therefore technically he was an Emperor [laughs]. In that role, he organized collective defense against the invasion of India by raising a volunteer army of people who bought nothing from the invading colonials, made salt, and got beaten while maintaining rigid discipline - just like an army. All they did not do was leave home or use violent methods to resist their invaders. The fact Gandhi himself didn't own much of anything and advised self-reliance as a keystone of freedom makes him the John Locke of our movement. But we don't take the Emperor Gandhi thing seriously, you know. It's just a bit of our cultural humor.
Presenter: The threat of "Mom, keep yelling at me and I'll get a job delivering chinese food and then Unplug when I've saved up!" has kept many a parent up at night...
Jack: Unplugging isn't really something you can sustain from youthful rebellion: kids who don't choose this way of life for themselves as adults are usually really poor Unpluggers - they don't take soil metrics seriously, they don't really understand the invest-in-your-lands model of labor, and so on. It's not really something for punks and anarchists, even though there is superficial appeal.
Presenter: There's a lot of science here!
Jack: Oh yes. We monitor everything we have proved pays, and more: soil bacteria genetics, nutrient levels in the soil, nematode populations, you name it. We have such excellent yields and pest control because we don't move around much - we get to know our land as scientists and artists and designers - we share knowledge and models.
Of course, not everybody contributes equally to this knowledge base - I have a neighbor who is a molecular biology professor by (former-) trade and, well, I use his numbers a lot [grins]. But we all do what we can, and the results are proof that our farming techniques - "high monitoring biointensive agriculture" or "Technical Permaculture" depending on where you live and which school you follow - our farming methods work, and will continue to work for at least a few hundred to a few tens of thousands of years.
And that's enough for us: leave it to our children to figure out how to get their own lives to be even more integrated morally, ethically and socially.
Presenter: Some say that Unplugging is a cult because of your "Unplugger Morals" doctrines...
Jack: Acting as if the god in all life mattered is radical politics. But we have people from every faith and tradition living as Unpluggers, as well as those with no beliefs but a deep moral conviction that this is the right thing to do. But as with Satyagraha - Gandhi's social change approach - this takes everything you have and more and you can't do it without a solid internal framework, a deeply personal commitment to this as Right Action in a Buddhist sense, as Dharma from a Hindu perspective, as The Life Divine if you are a Christian. We have radical Benedictine monks - on the edge of getting booted out of the Catholic Church - who have updated the lifestyle passed down from Benedict himself to use Unplugger Farming and who became part of the Unplugger Community as a result. But we also have anarchosyndicalist atheists.
All it takes is a belief you can act on which helps you make personal changes for global reasons. And a political faith isn't usually enough to do that, but it can be. Religion has proven over time that it can move people in ways that nothing else can, and Unplugging is the biggest change a society can make.
Living up to your values is hard. Faith helps some people do it, so we tend to see more of those kinds of people making the switch. It's just a selection bias.
Presenter: What do you mean "a change that society can make?"
Jack: Unpluggers now constitute 5 percent of the United States population. At first, we were the very ideologically motivated, and there was a lot of interface with older communitarian groups and prior generations who had attempted to make this transition.
But as we became more defined, and our thinkers elucidated our case more clearly - as our farmer-scientists began to really get the yields predicted in theory, on a per-square-foot basis... it became clear that we were talking about a partial solution to the problems that have faced the human race from the beginning of time: how do I live myself, and how does my family live.
And a society is just individuals and families, and sometimes families of families, all the way up to States and Governments and the International Agencies and so on. If you solve the problem for a single family, and it's something which can compete in the evolutionary marketplace of ideas, then eventually you can solve the entire problem.
You know why GDP has gone down 20 percent because of Unplugging? Unpluggers are entrepreneurs. We used to start businesses because we wanted to buy out at the top of the game, now we usually buy a fairly lavish Pod, and some really, really good quality land, unplug by 30, and some of us expect to spend the rest of our lives learning, teaching and exploring what it is to be alive. Farming five or six hours a day seems like a lot of work, but you do it with friends, and you're doing science and research some of the time, and you eat what you make. The basic activities of life are so much more satisfying that earn-and-spend-and-eat-carry-out when you actually respect them as basic human activities, as links we share with everything that is alive.
Presenter: Tell me about the Endowment.
Jack: The Endowment is how we help the poor to Unplug, and it is easily the most controversial part of our program. We encourage the developing world to Unplug as the ultimate form of Leapfrogging: skip hypercapitalism and anarchocapitalism and democratic socialism entirely and jump directly to Unplugging. Many Unpluggers take their excess capital, keep investing it in the system, and use the proceeds to fund private Unplugging programs. Others simply took their capital and added it to funds managed by a Grameen-bank like institution called the Unplugging Bank which lends people money to unplug, and has them pay for their Pods by selling excess farm goods and teaching agriculture for us. The leverage of these approaches has yet to be verified but - judging by the political repression of Unpluggers in China and India and some parts of Africa - judging by that resistance, I think we are going to be successful.
As the Mahatma said: "First they ignore you, then they laugh at you, then they fight you, then you win."
Software used to be an industry, you know?
Presenter: Thank you, Jack, for telling us about your life.
What can we learn from Japan
A friend of mine sent me this 2008 video of Richard Koo from Nomura Research Institute in which he presents his theory of “balance sheet recessions”. Mr Koo has been consistent with this message, with his presentation appearing in 2009 and 2010, and consistency is something I respect.
Summary
Mr Koo makes the case that in the type of crisis we are in – one in which the private sector is not willing to borrow and are actually paying down their debt – monetary policy is pretty much useless. The only effective tool are sustained public stimulus over a long period of time, not a series of small or big ones as we come out and come back in recession. He argues that there is no need to worry about inflation and higher interest rate, even with increasing fiscal spending, the reason being that banks will be happier to lend the money to the government and earn interest, than not lend money at all i.e. destroying money.
My opinion
I agree with Mr. Koo on his analysis of balance sheet recessions. But I think there are important cultural and political parameters for his solution to be viable in each geography (US, Europe, Asia):
- Debts must be repayable (including the government’s). If we are in a generalized Ponzi territory where we borrow to pay interest, hoping for assets to increase in value faster than debt, then it’s game over. Let’s assume they are.
- Economic agents must convincingly show they are doing their best to pay back their debt (and not hope that somehow they will be able to have someone pay for them). If they don’t, creditors will look for the exit and grab what they can before their promises become worthless.
- Savers must trust the public funds allocation process. This is probably the most important and challenging part and we must be creative about this. Good options to research IMHO to re-build trust that saved money lent to the Government will not be wasted: participatory budgeting or direct lending from Government to savers with specific projects people can invest in.

