Compendium for the Civic Economy

Produced by 00:/, published by Trancity*valiz, 2012

Elinor Ostrom’s work makes a strong case for recognising the rationality of collective and  cooperative economic systems beyond the simplistic dichotomy of state and market, so contradicting the equally simplistic assumption that only short term individual profit maximising can count s rational behaviour. Ostrom points out that there is plenty of evidence showing how cooperative systems can be highly effective in preserving and reproducing shared resources thorough collaboration and trust, and that therefore this should be understood as a long-term rational behaviour.

Ostrom, E. (2009) “Beyond Markets and States: Polycentric Governance of Complex Economic Systems.” Stockholm: Nobel Prize Lecture

... Inevitably, this process of institution-building is messy. The discovery of a new value and business model is often a typical ‘lean start-up’ process, in which civic entrepreneurs prototype and iterate ideas, products and services through going ‘live’ with their emergent plans as soon as they can, instead of relying on abstract feasibility studies. 

Ries, E. (2011) “The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses.” London: Crown Business.

Whether in streets or energy generation or local services, we are seeing eer deeper embedding of key civic economy principles in the functioning of everyday places. This goes beyond volunteering or social enterprise towards a fundamental change in the way we own, operate and govern our everyday environment, thus challenging the artificial divide between community development and economic development. Equally, it is changing companies - Umair Haque’s “New Capitalist Manifesto” describes how most successful companies across a range of sectors are those that embrace typical civic economy principles of deep value, openness to end-user input, and the unlocking od underused assets.

Hacque, U. (2011) “The New Capitalist Manifesto: Building a Disruptively Better Business.” Boston: Harvard Business Review Press.

Enabling:

recognising (e.g. recognising the diversity of already existing or emerging civic entrepreneurship); inviting (e.g. inviting new groups of people to become part of a collaboration or co-investment); connecting (e.g. connecting holders of underused assets with those able to re-activate them); legitimising (e.g. legitimising the often unorthodox approaches of civic entrepreneurs vis-à-vis sceptics); seed-funding (e.g. seed-funding part of the business model discovery process of a new venture instead of giving large capital subsidies); guaranteeing (e.g. guaranteeing the shop unit lease of an emerging venture in its start-up phase); co-investing (e.g. co-investing through creating a match fund for neighbourhood initiatives); legislating (e.g. legislating to enable crowd-funding or cooperative share capital); procuring (e.g. deliberately procuring goods or services differently to invite new market entrants, or introducing a community ‘right to challenge’ to break open existing contracts or procurement rules); reflecting (e.g. participating in new forums on impact measurement or creating peer-to-peer learning between ventures).

Compendium for the Civic Economy

Produced by 00:/, published by Trancity*valiz, 2012

CASE STUDIES

Fintry Development Trust

A community-private energy partnership

Fintry, United Kingdom

140.000 pounds 

21 micro-renewables projects enabled

600 pounds saings per household participating in free insulation scheme

In 2008 the Falk Renewables developer presented to the Fintry Council the project of 14 wind turbines which were seen by the community as an opportunity.

Falk Renewables already had experience in the UK in involving local communities as share holders but in this case the community’s proposal was taken a step forward by suggesting to build a 15th turbine which would be bought by the community over a 15 year loan. 

As a results the community runs a sport club and half of Fintry’s households benefited from a free insulation service run by the regional not profit organisation Energy Agency. 

Other examples:

Baywind Energy Co-operative, Cumbria UK (1996): is an industrial and provident society which enabled the construction of 6 wind turbines by selling shares to local people who got 7% return on their investment.

Ballen / Brundby Straw-fired District Heating, Samsø DK (2004): Is a 100% consumer-owned heating plant on an island which managed for 7 years to be solely relying on renewable energy sources.

Ecotricity, Stroud UK (2005): is a green company that invests large parts of its earning in building new wind turbines n the UK, in 7 years it has put 50 million pounds into wind energy and renewables.

Household Energy Service

A local Energy savings network

Bishop’s Castle, UK

25% of households have taken a survey

17% average carbon emissions reductions resulting from survey

0 pounds cost survey to households

Households Energy Service is a peer-to-peer advice service that translated the complex policy on climate change into a credible, low-cost pathway to everyday life adjustments.

A small number of paid staff is part of HES, a large number of volunteers gives free surveys to households that are then processed by a professional surveyor which provides recommendations easy everyday life adjustments.

note: a further project is Farm Carbon which brings together farmers and carbon reductions experts to develop more sustainable energy use in agriculture.

Other examples:

The Green Valleys, Brecon Beacons UK (2008): a community interest company that harness local expertise to develop renewable energy schemes (especially in hydropower).

ONZO, London UK (2007): is a for-profit company that branched out of the Hub Islington which helps households to reduce their carbon emissions through in-house energy displays and smart meter systems.

Summerfield Eco Village, Birmigham UK (2004): in a deprived inner city neighbourhood a housing association-led partnership enabled an eco retrofit and energy awareness project.

Hørsholm Waste to Energy

A neighbourhood clean-tech incinerator

Hørsholm, Denmark

93% waste diverted from landfills

60% recycled

33% incinerated

80% local heat generated from 10.000 homes through waste-to-energy plant&network

30% cheaper heating bills

With the EU legislation prohibiting the creation of new landfills, other options for waste processing are required.

In 1997 Denmark was the first country in Europe to make it illegal to bring waste suitable for incineration to land-fills. Today there are 29 waste-to-energy plants and 10 more down the pipeline.

The Hørsholm plant is co-owned by 5 adjacent municipalities (5 mayors form the board of directors) and due to the use of the best available technology the impact of the plant is minimal (in terms of noise, smell and pollution) and being in the centre of the town it uses high quality architecture design as a symbol of pride.

Hørsholm only send 6% of its total waste to landfill, 60% is recycled, 33% incinerated and 1% is hazardous waste which goes for special treatment. Th local waste-to-energy plant generates 80% of Hørsholm’s heat and 20% of its electricity. People living close to the incinerator have bills 30% cheaper than the national average.

Other examples: 

Richmond Hill Energy-from-Waste plant, Isle of Man (2004): owned by private waste management company it produces 10% of island’s electricity

Islington Business Waste Recycling Project, London UK (2009): project warded by the Islington Chamber of Commerce to increase recycling and reuse rates by offering free assistance to enterprises. Since then the service has been mainstreamed.

Torrs Hydro, New Mills, UK (2008): A community owned and funded hydropower scheme, the profits from which are reinvested into the community.

Incredible Edible Todmorden

A movement grown in public space

Todmorden, UK

600 fruit trees planted (1 per 2.5 residents)

40 growing sites in the town centre

33% residents take part in the IET activities

Since 2009 the IET started a guerrilla gardening approach and then involved public and private owners to use their underused land, such as Northern Rail, police and fire brigade stations and church graveyards. Schools are very involved with students in harvesting and processing products and the local health centre has started an apothecary garden.

The processing fee was reduced by the council from 107 to 10 pounds.

Other examples:

Middlesbrough, UK (2006): Transition movement

Nomadisch Grün, Berlin DE (2009): temporarily transforms into gardens abandoned spaces

Growing Communities, London UK (1993): social enterprise that links communities to small scale sustainable farms around London

The people’s supermarket 

A social venture supermaket

London, UK

1000 members after one year

60% of membership from local area

10% discount on groceries for members

The People’s Supermarket was started by a group of social entrepreneurs who had already experience in community driven regeneration, sustainability and food related innovation. 

The Supermarkets works with a membership of 25 pounds and 4 hours of voluntary work per month which entitles the member to a 10% discount and a vote on the decisions on products in the Supermarket.

Additionally the Supermarket runs a People’s Kitchen; a lunch-time take away service; some members collect products from farms which were disregarded by larger supermarkets due to dimension requirements.

There are two full-time employees supported by a welfare-to-work program and a manager  fully funded by charitable foundations.

The Camden local authority provided little direct support but played a great role in brokering the agreement and the landowner which is a charitable trust greatly supported the project because of its business model and community value.

Other examples:

The Bear Co-op, Todmorden UK (1980): is a health food co-operative which encourages food growers to sell directly from the shop and the cafe’ uses products from the Incredible Edible Todmorden gardens.

Park Slope Food Coop, New York USA (1973): is a members only supermarket co-operative where volunteers in exchange for their work get 20-40% discount on their groceries.

Green Valley Grocer, Slaithwaite UK (2009): a community owned co-operative in West Yorkshire where the refurbishment of the shop was funded through community share offer, volunteering and in-kind donation from other businesses.