This document discusses strategies for revitalizing local economies through local ownership and import-substituting development (LOIS) as an alternative to strategies focused on attracting large corporations and prioritizing exports (TINA). It provides examples of communities that have experienced economic growth through LOIS, and outlines how to nurture LOIS through planning, developing local people and partnerships, harnessing local financial resources, increasing local purchasing, and supportive policymaking. The document argues that LOIS can create more jobs and circulating wealth in a community than strategies focused on attracting non-local businesses.
17. Overview
I. Why Embrace LOIS?
II. How to Nurture LOIS?
18. I. Why Embrace LOIS?
Business Subsidies in Lane County (OR)
(mid-2003)
$80,000
$70,000
$60,000
$50,000 LOIS
$40,000
30x
TINA-Gross
$30,000 TINA-Net
$20,000
$10,000 10x
$0
Cost Per Job
19. Recent U.S. Stimulus
Local
$350,000
Global-Gross
$300,000 Global-Net
$250,000 Stimulus (High)
Stimulus (Low)
$200,000
$150,000
$100,000
$50,000
$0
Cost Per Job
20. The Importance of Multipliers
Impact of $100
Spending (Austin)
$60
$40
$20
$0
Borders BookPeople
21. The Jobs Verdict
Study $ Circulated Locally:
Local vs. Nonlocal Ownership
Austin (2002) 3.5
Maine (2003) 5.0
Chicago (2004) 1.6
Toledo (2004) 4.0
Iowa (2006) 1.6 (Jobs)
San Francisco (2007) 1.4-1.7
Phoenix (2007) 2.9
Grand Rapids (2008) 1.6
New Orleans (2009) 2.0
AVERAGE 2.6
32. II. How To Nurture LOIS?
Planning Plug the leaks.
People Support LOIS entrepreneurs.
Partners Compete through collaboration.
Purse Harness pensions locally.
Purchasing Spearhead “Local First” campaigns.
Policymaking Remove anti-LOIS biases.
33.
34. Hannah Grimes Work
Planning Industry Clusters
People Business Incubators
Entrepreneurship Classes & Hub
Partners Leadership Circle
BALLE Network
Purse Angel Investors Network
Giving Monadnock
Purchasing Marketplace
Buy Local Guides
Policymaking
35. Wealth from Leak Plugging
The 25% Shift:
The Benefits of
Localizing Food
In NE Ohio
36. 25% Shift Re-employs 27,000
Jobs
8,493
9,998
Farmers
Retailers
Processors
Other
4,081
5,091
37. Direct $$$ Benefits
Each year…
…$868 million in wages
…$4.2 billion output
…$126 million of state and local tax
38. Indirect $$$ Benefits
• Tourism • Fiscal Health
• Business Magnet • Improved Infrastructure
• Entrepreneurship • Rural Development
• Unemployment Benefits • Economic Security
($127 million)
39. Other Benefits
• Environmental
• Public Health
• Global Image
40. Other Benefits
• Environmental
• Public Health
• Global Image
41. Other Benefits
• Environmental
• Public Health
• Global Image
42. Leak-Plugging Potential Here
Indicator Data for
Cheshire County
Employees (August 2011) 39,903
Self-Employed (2009) 5,818
Unemployed (July 2011) 2,425
43. Leak-Plugging Potential Here
Indicator Data for
Cheshire County
Employees (August 2011) 39,903
Self-Employed (2009) 5,818
Unemployed (July 2011) 2,425
Potential New Jobs (Direct) 17,640
Potential New Wages $840 million
(Direct)
44. Examples of Leaks
Indicator Potential Jobs for
Cheshire County
Offices of Physicians 480
Limited-Service Restaurants 360
Commercial Banking 360
Temporary Help Services 297
Engineering Services 187
Hotels and Motels 175
Wired Telecommunications Carriers 158
General Warehousing and Storage 146
Custom Computer Programming
Services 144
Department Stores 141
56. Patrick Henry: (with minor edits)
“Why stand we here idle?
Is life so dear or peace so
sweet as to be purchased
at the price of chains…?
Forbid it, Almighty God. I
know not what course
others may take, but as
for me, give me
community or give me
death!"
57. For More Information:
Michael Shuman
202-669-1220
shuman@igc.org
www.cuttingedgecapital.com
www.livingeconomies.org