Class: Alternative Economics Duration: 90 Minutes Materials: · Whiteboard + pens · Flipchart pad + pens · Paper tabs Key Vocabulary: Social Enterprise; Local Currency; Local Exchange Trading System;
Objectives: By the end of the session, participants will: · Understand the opportunities presented by the ecological, economic and social crises · Understand how they can respond to these issues through enterprise · Explore Permaculture applications in the Business and Economic arena · Be motivated to conduct further research and investigation · Create an action plan for applying the information to their lives and communities
Lesson Introduction: In the sessions so far we have focused on design methods and practical solutions to ecological and social problems. This session now, might not be for everybody. Some of you might hear the information and choose it is not for them. Others might find it interesting, but take it no further. Others might realise the potential of this information and use it to make radical changes in your lives and your communities. Lets wait and see!
A few quick questions: Is business part of the problem or part of the solution? Is money good or bad? Put your hand up if you would feel confident to start your own business. There are a lot of problems facing humanity: ecological, economic, social, spiritual. A lot of the blame for this can be attributed to Big Business, who’s unsustainable, unethical and damaging behaviour has wreaked havoc on societies and the environment.
Successful solutions to these problems may lie in enlightened application of business. Innovative entrepreneurs are developing solutions to social and environmental issues that generate surplus and profit.
By the end of this session, you will have a much clearer view of how you can gain leverage on your skills, experiences, knowledge and passion to make real, effective change in the world.
Step-by-Step Procedure:
1. Outline Value of Nature, who's products and services include: Food, water purification, cloud production, carbon capture and storage, oxygen production, pollination, wellbeing, recreation – to name a few. Estimated value between $16-50 TRILLION DOLLARS per year! Current global GDP is about $65 trillion.
2. Much of this value is outside of the market, i.e. we get it for free. Only usually recognised in economics with things such as cutting forests for timber. Destruction of nature registers as ++ for GDP. Whilst this is a social accounting error that needs to be addressed, it is largely out of our control – so we wont dwell on that here. We are looking for practical, people scale solutions!
3. Current undervaluing of nature is an opportunity for permaculturists to start their own enterprises. Just as the financial crisis was sparked by investors overvaluing various bits of paper, which then came to a crash when they realised it was worthless – we will see the opposite once society comes to realise the value of nature and her products.
4. The goal is to produce profitable enterprises that tackle social and environmental problems.
5. How can we apply Permaculture to these ends? If our Business follows the three ethics of Earth Care, People Care and Fair Share, then it probably falls under the category of Social Enterprise
6. A Social Enterprise uses the power of business to tackle social and environmental problems in innovative ways, and then reinvests the profits to further achieve those goals.
7. Example: Cancook. Ex-offenders can operate their own catering stall under the Cancook brand. They take 50% of the profit, and the rest is reinvested to enable Cancook to expand and include more ex-offenders. Offender benefits as he has a source of income and runs his own business. Reoffending rates are very low. Reforming offenders becomes a self replicating, virtuous spiral.
8. Opportunities: 58% of social enterprises grew in 2011 vs 28% of normal SME’s.
9. Principle: Turning problems into solutions. With a little innovation, business sense and good design – we can turn problems into solutions that have the side benefit of creating meaningful employment
10. The Permaculture Entrepreneur creates an ecosystem of employees, and combines the strengths and interrelationships to create a whole greater than the sum of its parts. Synergy is key!
11. There are an array of Legal Structures to choose from when setting up a social enterprise.
· Traditional Companies limited by shares or guarantee can be adapted to act as a social enterprise by clearly stating is social and environmental aims and reinvestment of profit in the governing articles.
· A special legal structure called the Community Interest Company has been created specifically for social enterprise. CIC’s have a legal obligation to act for the benefit of the community. They also have an “Asset Lock” that means the companies assets and surpluses must be used for the community good, and can only be transferred to other social enterprises or charities.
· Industrial and Provident Societies aka Cooperatives can add an extra dimension to the enterprise, as it is owned and controlled by members. The membership can differ from coop to coop, but can include workers, consumers, suppliers and other stakeholders. By the community; for the community!
· Unincorporated associations which are essentially just groups of people working together for a common purpose. However, this comes with many downsides such as: difficulty in accessing funding; personal liabilities for debts and damages; lack of continuity if a member leaves.
12. Income generation is key! Often, the income will come from the customer. Alternatively, you might contract with a local authority. For example, some social enterprises provide health and education services which are free at point of delivery and paid for through contracts from local health and education authorities. It is also possible to contract with businesses to provide a product or service.
13. Social enterprise is not charity – it is not about hand outs! Whilst some social enterprises do receive grants and donations, and may receive some publicity and goodwill custom based on their ethos – they are ultimately businesses and to be successful they must be focused on adding value. They must provide a great product or service that is genuinely valuable for the purchaser. Remember this!
Practical Task:
1. Split participants into groups
2. Recap: Group lists out the Permaculture Ethics and Principles (for accelerated learning and enhanced information retention)
3. Situation: each group is given a social/environmental issue: Youth unemployment; declining bee populations; deforestation; poor diet
4. Task (15 mins): Each group is to brainstorm business ideas that: · Create solutions to the problem · Use 2 or more Permaculture principles · Follow the three ethics of Permaculture
5. Task 2(15 mins): Groups choose a business idea to expand: · How is this business going to make money? · How is this going to provide solutions to the problem? · Can it offer solutions to other problems? · What obstacles might stop your idea from working? How can you overcome them? · Who might interfere with your success? How can you get them on board? · Who’s support will help your business flourish? How will you gain that support? · What further research would you need to conduct to make this idea successful?
6. Review(approx 15 minutes): Groups reconvene and feed back their ideas and learnings. I clarify any misunderstandings and answer any questions. Speak about Hill Holt Wood and Greenworks. Closing loops, reinvesting in social goals, not worried about shareholder profits.
7. Celebrate! Congratulate group on their ideas and their new found ability to solve problems through business!
Local Economies; Local Currencies
Local economies are an essential part of creating a more sustainable society. Over the last 30 years we have seen a massive globalisation of world production – facilitated by cheap oil, cheap labour and a strong currency. We can pretty much say goodbye to all of that now! Workers in developing countries are demanding fairer wages, and the energy costs of industrial mega farms are spiralling out of control. The fairer and greener way will be found in redeveloping our local economies.
Globalised production allows us to ignore the true costs and damage. The friendly packaging in Tesco obscures the gruelling, low paid labour behind your Kenco, and animal cruelty that ended up in your pack of pork. The prices are reasonably low, but we forget to realise that this is Tesco exploiting their buying power – putting many small farmers out of business.
Draw the modern economy vs a local economy and explain the processes at work
Local economies have many benefits. They empower the community to meet many of its needs locally, building resilience in the face of an uncertain future. They encourage more human scale businesses, which truly value their customers and locality for more than just the profit potential. They build community spirit and identity. And they create meaningful jobs.
Social enterprise and local cooperatives are one tool to encourage the development of local economies. Another important factor is the development of local currencies.
Local currencies encourage people to buy from local businesses. They can’t be spent at big corporations or paid to banks, so they help prevent money from leaking out of the local economy. And because it is a local currency, whoever you pay it to will then pay it to another local person or business, who will pay it on again, and again, and again. All of this when perhaps they might have spent your Pound Stirling outside of the local area, or even outside of the Country! Local currencies play a strong role in developing and enriching local economies. They also develop awareness, peak peoples interest, and create a stronger sense of local pride.
Bristol is currently developing the Bristol Pound which will be fully exchangeable for Pound Stirling via the Bristol Credit Union. People can spend them in participating shops and will even be able to pay their Council Tax with them!
Local exchange: a practical task
1. Everybody is given a small piece of paper
2. Participants are instructed to write one service they can offer that will take approximately 30 minutes to complete – and write their name on the back
3. Everybody places their pieces of paper down in the middle of the group
4. Participants take turns to pick a service that appeals to them
5. These promises are then fulfilled outside of the class
Currency simply facilitates the exchange of services. However, most currencies are created by banks who then charge us interest. They make free money, which entitles them to some of our hard work, just because they Government has authorised them to do so. Not very fair share! Local currencies, when exchangeable for these currencies, still have some element of that problem.
Local Exchange Trading Systems (LETS) are trading facilitated by the community, for the community. They are interest free exchange systems. A record is held by the LETS every time people buy or sell a service. You can use a service on credit, interest free – you just have to offer your own services later down the line. They are great in economically depressed times such as now.
There are so many underutilised resources at the moment – unemployed people that could be providing valuable services, local businesses that are operating under capacity etc. Taking part in a LETS scheme means that this spare capacity can be exchanged, to the benefit of the local economy. People can make use of services that they might otherwise not be able to afford, and people can offer services that might not seem commercially viable in a normal monetary exchange. Best of all, it cuts out the banks!
Group Discussion: · What is the most valuable/interesting thing you have learnt in this session? · How can you apply what you have learnt to your life and community?
Review Notes by Richard Perkins: Nice intro and invitation to express individual ideas and perspectives. There was an opportunity to lead the discussion where you want it, such as "Yes, it is a debt based system..." Nice transition from the discussion to the content. You used some good examples and statistics. Questions were answered and demonstrated good preparation. It would be useful to write notes/flows/mindmaps on the board to prompt and direct note taking. The social enterprise exercise was a good idea and well designed, although it might have been good to continue part two which was dropped due to time restrictions.The amount of information in the lesson plan was very ambitious - perhaps you need to plan it all and then evaluate on the fly which parts to drop and include. Try not to rush through parts, it is fine to leave out certain parts although try not to make it obvious! The "Local Exchange" exercise seemed a bit confused - it could have been better explained and delivered. I would have finished the session on this task to leave everyone on a bit of a buzz! In summary, nicely presented. Clear, informative and well structured. I think a little ambitious with density of the lesson and some initial points and graphs could have been better illustrated on the board. However, great stuff, great presence and energy in front of the group!
Homework/Assessment: Fulfill the promise made in the local exchange exercise.
Evaluation: Leading up to my lesson, I was feeling quite nervous! However, as soon as I got up and started speaking, everything was flowing nicely. I was put off slightly when I realised that I had arranged my lesson plan notes in the wrong order - in future I will double check that everything has printed and been arranged properly! I enjoyed answering peoples questions, and this made me appreciate that to be a successful Permaculture teacher I must educate myself fully in the topics that I teach. It is also important to have wider knowledge, as students ask questions about things that interest them or relate to their existing knowledge in some way. I had underestimated the time that it would take for the practical tasks. It took longer than expected for groups to organise and get started, and then it took a good 10 minutes to feed back their work. Understanding this will allow me to better approximate timings in my lesson plans. In my preparation for the lesson, I was quite scared of not having enough content to fill the 90 minute session. When it came down to it, I actually had too much! As Richard suggested, having plenty of material isn't a problem, just pick and choose what feels most relevant to the group.
