The REconomy Project aims to help build the capacity of Transition Initiatives, and other community organisations doing similar work, to grow a new kind of local economy. It’s aimed at people active in Transition, or similar. Through their new website, REconomy aims to provide inspiration, processes, knowledge and tools that will help a community as it undertakes this exciting adventure. This includes leadership and visioning, transforming existing businesses and starting new enterprises.
The Local Multiplier Effect Always Counts
The Local Multiplier Effect (LME) is a very valuable, hidden feature of our economies. The term refers to how many times dollars are recirculated within a local economy before leaving through the purchase of an import. Famed economist John Maynard Keynes first coined the term “Local Multiplier Effect” in his 1936 book The General Theory of Employment, Interest and Money.
Over the past 50 years, the expansion of national businesses into local domestic markets has diverted this vital monetary stream and redirected it to centralized corporate coffers. There it is spent on large capital expenditures, overseas goods and all too frequently inflated executive salaries. This interception of funds has depleted local towns and cities across our nation of an important source of funds: recirculated income.
The Ghana Permaculture Nwodua Tree Nursery was created in 2007, as a means of community income and to fight desertification, erosion, and diversion of water flow by roads, through reforestation. A collaborative effort of youth, women, and men founded the community nursery, and all members of the community reap the success of the profit as well as the natural environment benefits of tree planting. The nursery started as a small production and soon blossomed into something larger, achieving the current production of over 96,000 seedlings per year.