TERM PAPER presentation on

1. TERM PAPER presentationon • Localisation and LETS Presented by:- SaiKiran Bhatnagar Roll No.-35

2. ECONOMICS AS IF PEOPLE MATTERED Model of economics should benefit poor as well as rich. Growing demand of a trade regime like general agreement on sustainable trade (GAST) instead of WTO. Trade rules should put restrictions on goods produced in environmentally damaging circumstances & also in exploitative forms of child labour. All economists around the world are engaged in working out a model of economics which ensures sustainable structures of production.

3. REDEFINING PROGRESS All nations measure G.N.P. which they consider as the growth of their economy. IS IT REAL GROWTH?? NO, G.N.P. is not the actual indicator of the growth. This growth is actually at the cost of natural resources, GNP calculation ignore degradation of natural resources. Redefining progress a Sanfrancisco based public policy organization is campaigning for new measure called GPI- Genuine progress indicator.

4. MARKET FUNDAMENTALISM Today market is governed by following fundamentals:- Free market is the most efficient way to organize modes of production and exchange. Common interest is best served when one looks for its own interests. All social activities and human interactions and contract based relationships can be valued in terms of money. All these activities are regulated by invisible hand of profit maximization. Today the market is seen as a place of profit maximization at any cost.

5. GOING LOCAL WHY??Since Capital is free to move in search of the most profit making locations. which leads to intense competition, among cities and countries to attract such capital.Forcing local and national governments to undercut prices to be competitive.In this race those economies which do not follow environmental standards seem to win and on the losing side are local and small economies because their products are environmental friendly and according to labour standards & hence are expensive.So we need to think about local economies and the poor people which are not benefiting from globalisation.

6. UNDERSTANDING AND EXPLAINING LOCALIZATION • Localisation is basically empowering local economies for the sustainable development of the world. • Localisation thus benefits the poor people of the local communities which cannot compete with the multinational companies.

7. LOCALIZATION CAN BE POINTED OUT AS:- • Promote local competition policies to eliminate monopolies from the more protected economies • Increased democratic involvement both politically and economically to ensure the effectiveness and equity of the shift towards more diverse local economies. • Ecological taxes on energy, other resource use and pollution to help pay for the economic transition towards localisation.

8. LOCALIZATION THUS IS A PROCESS :- • Which reverses the trend of globalization by discriminating in favour of the local. • Policies bringing about localization are ones which increase control of the economy by communities. • Increase in community cohesion. • Reduction in poverty and inequality. • An improvement in livelihoods, social infrastructure and environmental protection

9. THE ROUTE TO LOCALIZATION:- Reintroduction of protective safeguards for domestic economies. Market to sell manufacturing and services domestically or regionally Localising money such that the majority stays within its place of origin Local competition policy to eliminate monopolies from the more protected economies Introduction of resource taxes to increase environmental improvements and help fund the transition to the protect the Local, Globally approach Increased democratic involvement both politically and economically to ensure the Effectiveness and equity of the movement to more diverse local economies Reorientation of the end goals of aid and trade rules such that they contribute to the rebuilding of local economies and local control Leads to sustainable development, reduces poverty empowers society.

10. Why Economic Decentralization? • Local control of resources, especially necessary for those resources that are involved in the production of the basic necessities. Raw materials must be utilized as close to their source as possible for maximum efficiency, sustainability and benefit to the local people. 2. Production should be need-based, driven by consumption rather than profit. Production should be primarily for the local market to prevent the outflow of capital.

11. Production and distribution should be organized mainly through cooperatives. This is a critical component of economic democracy. • There should be local employment in local economic enterprises. This also ensures that very talented people can be properly utilized and will not succumb to "brain drain," • Commodities pertaining to the basic necessities which are not locally produced should be removed from the local markets.

12. NEW MONEY Money in the bank is equated with wealth, rather than tangibles like natural resources which actually are wealth and which in real manner sustain life. So its time to design a money that takes us towards sustainability and community welfare. The new money i.e. local currency created by the users themselves will be purely to facilitate their trade.

13. Healthy money system According to Korten • Make speculation unprofitable • Limit the growth of financial bubble • Increase incentives for cooperation among people and communities • Reward productive work and investment • Create a just distribution of claims to real wealth • Strengthen the social fabric of family and community • Provide incentives for locally rooted investment in real assets.

14. INTEREST FREE MONEY Bernard Lietaer a former banker and author of a book called “The future of Money: Beyond greed and Scarcity” says that there is enough food to feed everybody and enough work for everyone, but there is scarcity of currency. Money lended by banks creates additional pressure on economy. concept of community currency.

15. Community currency came into being when a community finds that conventional money is in short supply. By inventing their own local money or token of exchange the community is able to ensure that skills, services and goods keep going around thus creating livelihoods for more and more people. Community currency opens up many promising possibilities for the future. • Local currency will partially protect themselves from the vagaries of economic trends.

16. Localization and Agriculture • In agriculture, globalisation has brought about incredible increases in complexity over the past few decades. • Many of these changes are not introduced for the benefit of the farmer or the consumer; they are made for the benefit and profitability of the trans-national distribution chains and supermarkets.

17. Benefits of Localisation in Agriculture Sector • Keeping money circulating locally. • Reducing consumer concerns. • Increasing local employment. • Reducing the complexity of the production system involved. • Farmers will get appropriate price • Sustainable land use

18. Initiative of IFFCO foundation • IFFCO foundation is carrying out agricultural extension services provided by cooperatives. Agricultural extension services can be best medium to promote localization in agricultural sector. The reasons why they are using this are:- • It ensures sustainability of vegetable and fruit production • Improves quality/safety of produce • Reduce cost of cultivation as organic farming uses organic waste as alternative to fertilizers. • Improves soil health

19. Reduction in consumption of inorganics, which sets apart these produce from multinational produce which use a lots of fertilizers to increase production. • Promotion of kitchen gardens through Groups/Associations/Cooperatives so that local agricultural produce can be consumed locally.

20. Micro Enterprises and Localization:- Localization can benefit micro enterprises as the products of micro enterprises cannot compete with the products of MNCs. E.g.: - An initiative was taken by Royal Sundaram, Alliance insurance company and BASIX to bolster the needs of rural sector in micro enterprise area which will cover all the needs of insurance related problems of micro enterprises. It will shield against loss of assets or stock of rural entrepreneurs due to fire, floods, riots, strikes etc. It also covers burglary and machinery breakage also.

21. Microfinance and Localization:- • Microfinance model is a best example of localization as it helps poor to attain livelihood and thus helps them to attain sustainable development. • SHGs help each member of group to start their own enterprise and thus produce goods which can be consumed locally or in the same village. • Helps to strengthen local economy and prevents big companies to enter in local markets.

22. CONCLUSION Global experience of localisation has been very mixed. Since the globalisation cannot be undermined in this world, its importance is same as the importance of localisation. Localization can be a good option and also the option of local currency. One option is that all nations should go for Glocalisation = Globalisation + Localization.

23. THANK YOU