Transcript term paper sai ppt

TERM PAPER
presentation
on
• Localisation and LETS
Presented by:SaiKiran Bhatnagar
Roll No.-35
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
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sustainable structures of production.
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.
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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.
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•
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.
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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.
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.

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
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
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Leads to sustainable development, reduces poverty empowers society.
Why Economic Decentralization?
1. 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.
3. Production and distribution should be organized
mainly through cooperatives. This is a critical
component of economic democracy.
4. 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,"
5. Commodities pertaining to the basic necessities
which are not locally produced should be removed
from the local markets.
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
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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.
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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.
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• 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.
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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 transnational distribution chains and supermarkets.
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
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
• 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.
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.
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.
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.
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THANK YOU