Protecting and developing local economies

Chap e 10 PROTECTING AND DEVELOPING LOCAL ECONOMIES 162 PROTECTING AND DEVELOPING LOCAL ECONOMIES Richa d Dou hwai e Richa d Dou hwai e is an economis , au ho and key hinke in he ield o sus ainable de elopmen . He has been a con ibu o o na ional and in e na ional con e ences in hese a eas. He has augh ex ensi ely on he MA (Sus ainable Communi y De elopmen ) o he Depa men o Adul and Communi y Educa ion a NUI Maynoo h. Why should anyone wan o swim agains wha appea s o be he ide o his o y by a emp ing o ebuild local economic sys ems which, o e he pas cen u y, ha e been almos en i ely swep away? Don’ small coun ies and he egions wi hin la ge ones eally ha e no op ion bu o pa icipa e in he global economy in a whole-hea ed way? This chap e will explo e he answe s o hese ques ions. Ce ainly, ebuilding a local economy is no an easy op ion, bu I hope o show ha i is one ha is de ini ely wo h making he e o o achie e. Few o us would wo y abou he egions in which we li e being en i ely abso bed in o he global economy i ha sys em was equi able, sus ainable, and wo ked eliably and well. Bu i is none o hese, which is why we need bo h o de elop local al e na i es o i and also o a emp i s e o m. Le ’s look a each o hese h ee a eas in u n o see he ex en o which he global economy ails. Fi s , is i equi able? 1. Equi y A ew yea s ago, Wes po , he own whe e I li e, decided ha i would a emp o leng hen i s ou is season by ad e ising gol ing-holiday packages in Sweden in he sp ing and au umn. Why Sweden? Well, he Swedes we e ega ded as ich and he e o e a po en ially luc a i e ma ke . Fo a ew yea s, he plan wo ked and mo e isi o s came. Qui e soon, howe e , as one gol ing holiday is much like ano he , Wes po ound i sel compe ing o business wi h Sco ish and Po uguese gol eso s. E e yone’s p ices came down in he ensuing p omo ional ba le, lowe ing he e u n o he holiday p o ide s and e ec i ely aising he incomes o he Swedes as hey could now buy he same aca ions o less money. In o he wo ds, he ich go iche and he ( ela i ely) poo , poo e . 163 Tha is he way he global sys em almos always wo ks. Indeed, selling any hing ou side you a ea in compe i ion wi h o he communi ies is likely o inc ease he ela i e weal h o you a ge cus ome s. You goods and se ices don’ ha e o c oss in e na ional bo de s o ha e his e ec . Fo example, I once s ayed o se e al days in a e y poo illage in Tamil Nadu in India and I ine i ably began o hink abou wha he illage s could do o ease hei po e y. The only asse s hey seemed o ha e we e hei labou and hei land – could hey g ow ex a ege ables and se up a co-op o sell hem in Bangalo e, he nea es big ci y? Well, hey ob iously could, bu i o he illages did he same hing oo, he ex a supply o oma oes, ok a and eggplan would b ing he p ices down, making he Bangalo e people sligh ly be e o while gi ing he a me s qui e a lo less o hei labou . The mos ob ious s a egy o he illage migh no he e o e be he bes in he longe e m. Rich coun ies and ich people always call o ee ade and be e anspo links because his heigh ens compe i ion, b ings down p ices and hus makes hem be e o . As India’s oads imp o e, mo e and mo e illages will ind i possible o send pe ishable p oduce o dis an ci ies. This will des oy he pa ially-p o ec ed niches wi hin which exis ing p oduce s ha e been making modes incomes. The na u al eac ion o he p oduce s o his will be o a emp o main ain hei own amilies’ li elihoods by educing hei cos s. They will cu hei wages bills ( hus elimina ing o he amilies’ incomes) by buying mo e indus ial inpu s such as pes icide sp ays and machine y. This will educe he p opo ion o he money om he sale o he goods sold o he ou side wo ld ha is a ailable o he illage as a whole o li e on. In o he wo ds, unless he o al income om selling he ege ables inc eases by mo e han he cos o he inpu s, ee ade and he ex a compe i ion i b ings will make he illage wo se o . This p ocess has been one o he ac o s widening he gap be ween he ich and he poo , bo h wi hin coun ies and be ween hem. A Uni ed Na ions Con e ence on T ade and De elopmen (UNCTAD) Repo (1997) shows ha in nine ou o a sample o en La in Ame ican coun ies, he di e en ial be ween he ea nings o mo e highly skilled wo ke s and hei less skilled colleagues inc eased ma kedly be ween 1984 and 1995 as a esul o ee ade. Indeed, in mos cases, he eal pu chasing powe o he leas skilled wo ke s ac ually declined, in se e al cases by o e 20%. Simila ly, an In e na ional Labou O ice (ILO) s udy o 30 coun ies in A ica, Asia and La in Ame ica ound ha in wo hi ds o he coun ies, he eal wages o all wo ke s ell be ween he la e 1970s and he la e 1980s, wi h he leas skilled alling by he g ea es pe cen age (ILO, 1996: Table 5.9). A ecen Wo ld Bank pape (Lundbe g and Squi e, 1999) epo ed ha da a om a sample o 38 coun ies be ween 1965 and 1992 had shown ha g ea e openness o ade had educed 164 he incomes o he poo es 40 pe cen o he popula ion, bu s ongly inc eased hose o he emaining g oups. “The cos s o adjus ing o g ea e openness a e bo ne exclusi ely by he poo ” he Bank said in a commen a y. The i alics a e in he o iginal. (Selec ed Reading: A icle on Globaliza ion and Inequali y - h p://www.wo ldbank.o g/po e y/inequal/abs ac s/milano .h m) This widening o he gap be ween he leas well paid and all o he income ea ne s in hei socie ies is, in ac , exac ly wha s anda d economic heo y p edic s. In he 1930s Eli Hecksche and Be il Ohlin de eloped he heo um which is now named a e hem and which s a es ha each coun y ends o expo goods ha use he highes p opo ion o i s mos abundan , and hence ela i ely cheapes esou ce. Fo mos ‘de eloping’ coun ies his esou ce is i s unskilled labou and, as compe i ion in in e na ional ma ke s be ween such coun ies will end o o ce he p ices o hei expo s down, he ea nings o he unskilled will be educed by mo e han hose o mo e highly skilled wo ke s less exposed o o eign compe i ion. All wo ke s in sec o s exposed o in e na ional compe i ion may he e o e see hei wages all as ma ke s open up, bu hose mos exposed will a e he wo s . Acco ding o he Uni ed Na ions De elopmen P og amme (UNDP) he di e ence in pe capi a income be ween he weal hies 20% and he poo es 20% o he wo ld’s popula ion was 30 o 1 in 1960; jumped o 78 o 1 in 1994, and dec eased a bi o 74 o 1 in 1999. The poo es 20 pe cen saw hei sha e o global consump ion decline om 2.3 pe cen o 1.4 pe cen in he same pe iod. In 1996 James Spe h, hen he adminis a o o he UNDP, said “We li e in a wo ld ha has become mo e pola ised economically, bo h be ween coun ies and wi hin hem. I cu en ends a e no quickly co ec ed, economic dispa i ies will mo e om inequi able o inhuman. In mo e han a hund ed coun ies pe capi a income is lowe han i was i een yea s ago, and, as a esul , mo e han a qua e o humani y – 1.6 billion people – a e wo se o ” (Spe h, 1996). No hing has imp o ed signi ican ly since hen. Indeed, P o esso Robe Hun e Wade (2001) o he London School o Economics hinks he inequali y has become wo se. Besides ee ade, ano he eason o he g owing gul be ween ich coun ies and poo e ones is ha he ich coun ies issue he ese e cu encies – he dolla , he eu o, he pound, he Swiss anc and he yen – which he es o he wo ld uses o ade and o sa e. When gold was he wo ld cu ency, weal h was c ea ed whe e e he gold was ound. Today, weal h is c ea ed in he ese e cu ency coun ies – he US, B i ain, he Eu ozone, Swi ze land and Japan – when hei banks app o e loans. The o al gain om ha ing a 165 ese e cu ency ( he echnical e m is seigno age) is he cumula i e balance o paymen s de ici on he impo -expo accoun ha he issuing coun y is able o un up. A p esen mos o hese gains a e going o he US, which excep o 1991 has impo ed mo e han i has expo ed e e y yea in he pas wen y. In hose wo decades i has amassed a cos - ee deb o he es o he wo ld o $2,500bn. This amoun s o hal he o he coun ies’ o al sa ings and, as I w i e, because i is impo ing hal as much again as i expo s, US indeb edness is inc easing a $1.5bn a day. B i ain’s gains om ha ing a ese e cu ency a e iny in compa ison and none o he o he issue s is cu en ly exploi ing i s abili y o bo ow cos - ee a all. The US is able o inance i s ade de ici cos - ee mainly by selling go e nmen bonds and sha es in US companies. In e es and di idends a e paid on hese secu i ies o cou se, so i is no co ec o say ha he bo owing is in e es - ee. Howe e i is cos ee because he paymen s a e made in dolla s ha a e me ely added o he o al amoun he US owes. The paymen s will only cos Ame ica any hing i he dolla s a e e e used by he o eigne s o whom hey belong o pu chase goods and se ices om he Uni ed S a es. Ha ing he wo ld’s main ese e cu ency has b ough qui e ema kable bene i s o he US because he mo e dolla s ha he US c ea es and spends in he es o he wo ld, he mo e dolla s he es o he wo ld will wish o in es in he US. These ex a dolla s push up he p ice o sha es on Wall S ee gi ing he o eigne s who ha e al eady in es ed he e an a ac i e capi al gain – on pape . These gains encou age he in es men o e en mo e o eign-owned dolla s, allowing he US o inc ease i s cu en accoun de ici e en mo e. We can ge a good idea o how big a bene i his $2,500bn has been by ecalling ha in 1998, he Uni ed Na ions De elopmen P og amme es ima ed ha he expendi u e o a six h o ha sum – $40bn a yea o en yea s – would enable e e yone in he wo ld o be gi en access o an adequa e die , sa e wa e , basic educa ion and heal h ca e, adequa e sani a ion and p e- and pos - na al a en ion. The wo ld-wide accep abili y o he dolla is, in ac , he eason why he US, wi h a popula ion o 281 million, is he wo ld’s sole supe powe , able o spend as much on a mamen s as he nex wen y bigges a ms-buying na ions pu oge he , coun ies wi h a o al popula ion o 3.5 billion. E en i he US we e no misusing i s posi ion as he main p o ide o he wo ld’s money, he ese e cu ency sys em would be undesi able. Wha i means is ha i one poo coun y wan s o buy om ano he , i has ei he o sell some hing o a ese e cu ency coun y o bo ow he unds om one in o de o ge he money o do so. The si ua ion is exac ly he same in he Indian illage – i wo neighbou s wish o ade, one o hem has 166 o ge he money i s , di ec ly o indi ec ly, om an u ban cen e o which somebody in he u al a ea once supplied some hing o wen in o deb . In bo h cases he e is ano he powe ul posi i e eedback mechanism. The poo e a ea sells o he iche one because ha ’s whe e he money is. Then, as we saw, compe i ion builds up be ween he p oduce s o he ela i ely s anda dised goods – mine als, oods u s, clo hing and oo wea – made in poo e a eas, educing he p ice each ecei es and hus widening he gap be ween hem and hei cus ome s. Despi e his, howe e , he poo ha e no op ion bu o con inue o sell o he ich because while o he poo people migh despe a ely wan he hings hey a e making, hey don’ ha e he money o buy. In bo h he in e na ional and he in e nal case he e is an inhe en ly unequal ela ionship in which he iche pa y always wins. The sys em is undamen ally un ai . Only he es ablishmen o a p oduce s’ o ganisa ion like he O ganiza ion o he Pe oleum Expo ing Coun ies (OPEC) can p o ide a solu ion o he immise a ion b ough abou by b eaking down ade ba ie s and imp o ing anspo a ion o inc ease compe i ion. 2. Sus ainabili y As a esul o globalisa ion, a high p opo ion o he wo ld’s popula ion now ea s he same oods, is housed in buildings cons uc ed o he same ma e ials, d i es he same ca s and li es and wo ks in much he same way. This uni o mi y means ha much o humankind compe es on wo ld ma ke s o he same aw ma e ials – co on, s eel, cemen , oil – and hus pu s hei sou ces unde a high – and in many cases unsus ainable – deg ee o p essu e. Wo se s ill, globalisa ion c ea es a posi i e eedback ha ewa ds hose coun ies and companies ha consume he Ea h’s esou ces mos apidly wi h incomes ha enable hem o pu chase and des oy e en mo e. I also des oys he nega i e eedback mechanisms ha once wa ned communi ies o mend hei ways when hey s a ed beha ing unsus ainably. Now ha goods can be anspo ed om anywhe e o hose wi h he money o pay, he be e -o know ha once he e ili y o a dis ic ’s soil declines, i s o es s a e elled, i s mines exhaus ed, i s seas ished ou , hey can always impo hei equi emen s o , i necessa y, mo e somewhe e else. The e is he e o e a close link be ween es o ing local economic sel - eliance and achie ing sus ainabili y. Theo e ically i migh be possible o de elop a wo ld-wide indus ial cul u e ha enabled all humani y o li e sus ainably wi hin he limi s o he wo ld, bu he scale and he complexi y o he ask a e immense. An easie , mo e easible al e na i e is o c ea e a sys em ha would encou age a g ea e di e si y o die , clo hing, building ma e ials and li e- s yles. This would ake he p essu e o o e -used esou ces jus as i does in he na u al wo ld whe e each species has i s own ecological niche and a oids compe ing di ec ly wi h he o he s. 167 Di e si y is desi able o o he easons oo. Fo e e yone who g ows up in an a ea o ind an occupa ion he e in which hey can eel ul illed, a wide a ie y o jobs and o he ac i i ies is necessa y because people di e widely in hei in e es s and ap i udes. A wide ange o jobs c ea es a ichness o li e. I is impo an economically oo because i a communi y o a coun y impo s a lo o i s equi emen s and elies on expo ing a limi ed ange o goods and se ices o pay o hem, i isks ge ing caugh ou i some hing goes w ong o he ma ke changes. Fo example, I eland is he wo ld’s second-la ges p oduce o compu e so wa e. I also ea ns a lo om expo ing milk p oduc s and bee and om selling i sel as a ou is des ina ion. Suppose ha he e is an ai line s ike, so he ou is s can’ come. O ha he so wa e companies ind hey can ge equally good p og ammes w i en much mo e cheaply in Bangalo e. O ha an ou b eak o oo and mou h disease sp eads o hund eds o a ms and makes I ish bee , cheese and bu e unexpo able. The economic and social cos s o any o hese would be immense. Di e si y is he e o e essen ial o achie ing sus ainabili y. Un o una ely, hough, a highly compe i i e wo ld ading sys em which delibe a ely se s ou o emo e e e y possible ba ie – including hose o dis ance and, as wi h gene ically-modi ied oods, consume p e e ence – o he ee mo emen o goods and se ices lea es e y ew niches in which di e si y can hide. Pa o he p oblem is ha a di e se economy almos ine i ably p oduces a highe cos han one which specialises in a e y ew p oduc s. This is because many p oduc s exhibi wha economis s call ‘inc easing e u ns o scale’. In o he wo ds, he mo e o hem you p oduce, he cheape hey become. The i s model o a new ca o come o he p oduc ion line will ha e cos many millions o c ea e. In compa ison, he one immedia ely behind i will be e y cheap and he ones ha ollow ha will become cheape s ill as he company, i s supplie s and i s wo ke s mo e along lea ning cu es. Consequen ly, anyone p oducing ela i ely small numbe s o ca s will be a a p ice disad an age because hey will ha e o sp ead he de elopmen cos s o hei i s ca o e a mo e limi ed p oduc ion un and be unable o mo e as a as hei bigge i als along he lea ning cu e. Exac ly he same can be said o almos e e y p oduc . Take some hing basic like, say, shoes. To p oduce hem using mode n me hods needs an ex ensi e in as uc u e including specialis supplie s (o , be e s ill, p oduce s) o lea he , soling ma e ials, adhesi es, clicking p esses, p ess kni es, sewing machines, h ead and much mo e. I also needs people who know how o design shoes, o he s who can use he specialis equipmen equi ed o make hem, and s ill o he s wi h he skills o keep delica e machines in wo king o de . I he e o e akes a conside able in es men in people, equipmen and acili ies o p oduce he i s shoe. This is he eason why e e y indus ial economy in he wo ld de eloped behind a i ba ie s. 168 The Ge man go e nmen knows his well. The main aim o i s p og amme o ge pho o ol aic (PV) panels i ed on 100,000 oo s be ween 1999 and 2004 is no p ima ily o gene a e elec ici y. I is o gi e Ge man PV manu ac u e s a chance o build up p oduc ion olumes and ge hei p ices down su icien ly o unde cu all o he p oduce s in he wo ld. The p oblem wi h inc easing e u ns o scale is ha , o he hings being equal, he bigges p oduce s (like Mic oso , o example) will be he cheapes and mos p o i able and will d i e almos all hei i als ou o business. This leads o ac i i ies ha could in heo y be ca ied ou equally well in many places in he wo ld being concen a ed in e y ew: Ta i ba ie s o some o he so o p o ec ion a e he e o e necessa y i a egion o a coun y is o de elop o main ain a di e se, and hus mo e sus ainable economy. The globalised economy is becoming inc easingly unsus ainable o ano he eason oo. As we’ e seen, cheap anspo is one o he pilla s on which i s ands – ake ha away and a e-localisa ion would au oma ically come abou . And, in u n, cheap anspo a ion depends on ha ing cheap oil o uel ships, planes and oad ehicles. So how long will cheap oil las ? The answe is ha while oil i sel will ne e un ou , cheap oil will because many coun ies’ ields a e becoming deple ed. As a esul , wo ld’s p oduc ion will peak wi hin he nex i e o six yea s and hen begin a s eady decline so ha by 2050, ou pu will be no mo e han hal he cu en le el. Na u al gas, which some ehicles bu n, will also be becoming sca ce by hen. I s ou pu is expec ed o peak in 2040 and hen decline apidly. Al hough al e na i es o bo h uels could be ound – hyd ogen om wind-gene a ed elec ici y, pe haps, o oil subs i u es p oduced om coal – a massi e amoun o capi al and esou ces would be equi ed o build he new sys ems equi ed o ake hei place. In o he wo ds, he subs i u es canno be cheap, which in u n means ha he mo emen o low- alue commodi ies and any ime-sensi i e goods ha ha e o be lown will decline. This will open new oppo uni ies o local p oduce s. In conclusion, hen, while he global economy will always exis , i is no sus ainable a i s p esen size because i is des oying bo h he di e si y equi ed o i s s abili y and he ene gy esou ces on which i elies. Local p oduc ion o local use will he e o e become e y much mo e impo an . 3. Reliabili y Is i sa e o ely on he wo ld economy o deli e he essen ials o li e yea a e yea ? And can i p o ide us wi h a eliable income wi h which o buy hose essen ials? As I w i e, inc easing numbe s o people a e inding ha i ’s ailing hem on he la e coun . 169 Redundancies and business closu es a e becoming inc easingly common in Eu ope and No h Ame ica and a dep ession ha has he po en ial o become as deep and long-las ing as ha in he 1930s seems o be de eloping. In many coun ies, o cou se, he wo ld sys em ailed o deli e some ime ago. All o sub- Saha an A ica is dep essed and ye , despi e commodi y p ices ha , in eal e ms, a e o en below hose in he 1930s, he people see no al e na i e bu o y o expo e en mo e. Leso ho, appa en ly, has he highes a e o unemploymen in he wo ld a 39.3%, Sou h A ica (23.3%) comes ou h and Bo swana (21.5%) six h bu he e may be wo se places whe e go e nmen has b oken down and doesn’ keep s a is ics. (The Economis , 2003). In Asia, employmen le els ha e no eco e ed since he ige economies c ashed in 1997 and he ie ceness o he compe i ion be ween hem means ha de la ion has se in. Japanese p ices, o example, ell by an a e age o 2% in 2002. In La in Ame ica, he cu ency c isis in A gen ina has doubled joblessness in he pas wo yea s. I is now a ound 24%. E en oil- ich Venezuela has he 17 h highes a e o unemploymen in he wo ld. Is he e anywhe e, indeed, whe e he wo ld sys em can be said o be wo king eally well? A dep ession is looming ahead because all he money we use apa om no es and coins is c ea ed on he basis o deb . Money ypically begins i s li e when someone w i es a cheque on a loan acili y hey ha e been g an ed by hei bank o uns up a deb on hei c edi ca d. I disappea s when ha deb is epaid. Consequen ly, i you ha e no mo gage o deb s o any so and a posi i e balance in he bank, you only ha e ha money because someone, somewhe e, has bo owed i and is paying in e es on i . The snag wi h c ea ing money his way is ha i depends on con idence and i op imism abou he u u e sh inks, so will he money supply and, as a esul , he olume o ading i is possible o ca y on. So i enough people say o hemsel es some hing like “Pe haps I’d be e no ake ou ha ca loan jus a he momen . My i m isn’ doing oo well and he e migh be edundancies. I’ll wai o see how hings wo k ou ”, hei ea s o he u u e migh well be ealised. Wi h ewe people like hemsel es bo owing, less money will be spen , and his will mean less wo k o hei employe s. Thei collec i e cau ion could pu hem ou o wo k. On he o he hand, when lo s o people bo ow, i c ea es plen y o wo k and encou ages u he bo owing. The ex a bo owing is needed because highe p ope y p ices equi e people o ake ou bigge mo gages and i ms ind hey need ex a capaci y o keep up wi h demand. A i uous ci cle is c ea ed wi h each ound o loans c ea ing he necessi y o ano he . A boom de elops which will ca y on un il ei he an ex e nal e en cools hings 176 e e y e o is he e o e made o minimise hem. I someone in es s in a p ojec in hei own communi y, howe e , he e a e many ways in which hey can ge a e u n on hei money qui e apa om he in e es hey ecei e. Indeed, hese non-in e es e u ns migh be so impo an ha hose inancing he p ojec migh be p epa ed o cha ge no in e es a all and e en con ibu e o an annual loss in o de o be su e i goes ahead. This migh be because he p ojec will p o ide employmen o hemsel es o hei child en. O because i will inc ease incomes in he a ea and help hei exis ing business do be e . O because i will cu unemploymen , hus educing amily b eakdown and c ime. Communi y in es men p ojec s a e he e o e e y di e en animals om hose un o he bene i o ou side in es o s. Fo one hing, hey seek o maximise he o al incomes he p ojec gene a es in he communi y, no jus he p o i elemen . So, a om seeing he wage bill as a cos o be minimised, hey ega d i as one o he p ojec ’s majo gains. A i udes o wo k a e di e en oo. Whe eas ou side in es o s seek o de-skill wo k wi hin he ac o y so ha hey can hi e he cheapes possible labou , a communi y company, pa icula ly a wo ke s’ co-op, would wan he wo k o be o ganised so ha hose doing i ind i in e es ing and ul illing. Ou side in es o s also ha e e y sho ime-ho izons o hei p ojec s, wan ing o ea n hei capi al back in h ee o ou yea s. A e ha , i necessa y, hey can close he plan and mo e on. Communi ies, on he o he hand, need long- e m incomes o long- e m p ojec s like aising child en, and a communi y-owned ac o y would wan o p oduce o a sa e, s able ma ke s, mos p obably in i s own a ea, a he han he ma ke wi h he highes immedia e a e o e u n. Simila ly, while ou side in es o s me ely ensu e ha a plan ’s emission le els s ay wi hin he law because any hing be e would cos hem money, a communi y company is likely o wo k o much highe s anda ds o a oid ouling i s own nes . A wo ld economy ha was sus ainable would he e o e be almos he exac opposi e o he p esen unsus ainable one. I would be localised a he han globalised. I would ha e no ne capi al lows. I s ex e nal ade would be con ined o unimpo an luxu ies a he han essen ials. Each sel - elian egion would de elop o a ce ain poin and hen s op, a he han g owing con inuously. In es men decisions would be made close o home. And asse s would be owned by he people o he a ea in which hey we e loca ed. The e is no space he e o discuss how such a sus ainable, sel - elian egional economy migh be ini ia ed and buil o how i would ha e o be o ganised so ha one sec ion o i s popula ion did no ake ad an age o ano he . I a emp ed his ask in my 1996 book Sho Ci cui which is now a ailable on he web a www. eas a.o g. All I can do he e is o summa ise he essen ial ea u es o a sus ainable e i o y: 177 ■I has a s able popula ion ■I p o ides he basic necessi ies o li e o i s popula ion om enewable esou ces unde i s con ol and expec s o be able o con inue o do so wi hou o e -using o deg ading hose esou ces o a leas he nex housand yea s. I is he e o e able o ade wi h he ou side wo ld ou o choice a he han necessi y. This ees i om he need o do unpala able o unsus ainable hings in o de o compe e wi h o he egions such as adop ing po en ially dange ous echnologies o cu ailing social p o ec ion p o isions. ■I is able o p o ec i s enewable esou ces and i s popula ion bo h mili a ily and economically. I s collec ion o economic p o ec ion weapons includes an independen cu ency and banking sys em. I has no deb s o lende s ou side and he e a e no ne lows o capi al ac oss i s bo de s, hus allowing i s in e es a e o all o close o ze o as i mo es owa ds ma u i y. ■I does no depend on con inual economic g ow h o s a e o collapse. I s economy g ows e y slowly i a all. Making one’s own egion sus ainable along hese lines migh seem o in ol e u ning i in o a g im, es ic i e place bu I hink ha ’s w ong and ha i will become a libe a ing and joyous one ins ead. Ce ainly, he only way o an a ea o escape om a sys em ha con inually impo e ishes he pe iphe y by aking esou ces o he cen e, whe e e ha cen e migh be, is o build a p o ec i e niche wi hin which i s local economy can de elop di e si y and become mo e sus ainable. A p esen , because all ou ideas abou wha cons i u es de elopmen boil down o inding ways in which some o he money ci cula ing in he emaining islands o p ospe i y can be cap u ed by communi ies ou side, we a e des oying di e si y and helping cen alisa ion along. The Wo ld Bank, ILO and UNCTAD s udies we discussed demons a ed clea ly ha whene e a poo e coun y o egion a emp s o sa is y he needs o a weal hie one a he han a ending o i s own, i s dependency and weakness a e inc eased. I we ecognise his, we will quickly begin o hink abou he na u e o de elopmen and how o p o ec ou communi ies in a adically di e en way. 178 Re e ences Bou ne, G. 1969 Change in he Village, New Yo k: Augus us M. Kelly Dou hwai e, R. 1996 Sho Ci cui , Dublin: Lillipu P ess The Economis , 2003 ‘Pocke Wo ld in Figu es’, London. ILO, 1996 Wo ld Employmen Repo 1996/97, ILO: Gene a. Lundbe g, M. and L. Squi e, 1999 The simul aneous e olu ion o g ow h and inequali y, Wo ld Bank, Decembe 1999 h p://www.wo ldbank.o g/ esea ch/g ow h/pd iles/squi e.pd Rose, W. 1942 Good Neighbou s, Camb idge: Camb idge Uni e si y P ess Spe h, J. 1996 Speech on he 1996 Human De elopmen Repo , Na ional P ess Club, Washing on DC, 16 July 1996. p://lis s.ine .co. h/pub/sea-aids/plun/plun37. x UNCTAD, 1997 T ade and De elopmen Repo 1997, New Yo k and Gene a: Uni ed Na ions publica ion sales no. E.97.II.D.8 Wade, R.H. 2001 ‘The Rising Inequali y o Wo ld Income Dis ibu ion’, Finance & De elopmen , Washing on: IMF, Vol. 38, No. 4 Decembe