Easy to read as a handbook for activists looking for a way to engage with local democracy and work through strategies aimed at bringing about progressive reform. Drawing on diverse experiences, from Mondragon, Cleveland, North Ayrshire, North of Tyne, Wales and Preston the core idea is that of 'community wealth-building'. This boils down to mapping the terrain of a given political/geographical area to look for the ways in which 'wealth' can be stopped from draining outwards into wider circuits of capital accumulation and kept with local communities.
For UK activists the model is the small city of Preston in Lancashire. A reform-minded council got things going by looking for 'anchor institutions' within the area of its administration which had sufficient power within the local economy to re-shape supply chains around providers in the the immediate vicinity rather than beyond. By 'anchor institutions' the authors mean things like the NHS, universities, regional banks and large employers with strong ties to the area who can be persuaded to source their supply chains from local providers. Assuming this can be done, the strategy anticipates that the procurement process will soon butt up against the limits of what is available to take on this activity and, in normal circumstances, would mean going back to suppliers beyond the region.
At this point the Preston model asks what might be done to stimulate local activity to fill these gaps. This could be be everything from outreach to established firms to see what scope there might be to repurpose their businesses to provide the goods and services required; encourage local entrepreneurs to establish wholly news business for this purpose; and, most radically, stimulate activity to set up worker cooperatives and other types of mutuals to do the same thing.
The book cites impressive statistics which demonstrate that the outflow of capital can be significantly reduced by these means with benefits showing up in terms of expanded employment opportunities with higher wages for local people. As a consequence of pursuing these strategies the local council in Preston claims its city is an outlier in terms of its economic vibrancy in a region otherwise scarred by de-industrialisation and the outward drift of the young to larger cities.
Presented in this way an obvious limitation is that the Preston model works in a limited set of circumstances – notably in a district with a strong sense of civic identity, perhaps a sense of communal grievance, compact enough to make information about its assets transparent to the local community, and still having enough of these to constitute a firm anchor for the economy. The authors might argue that the basic elements always exist to function as a viable model – it is a question of whether local activists are savvy enough to get the whole thing going.
By way of encouragement the book outlines other examples of the community wealth-building approach applied in different sets of circumstances. The local government regions of North of Tyne, North Ayrshire, London Borough of Newham are all considered, alongside the devolved Welsh government. As experiences of community wealth-building extends across these different situations the language is modified, with ‘foundational economy’ replacing ‘anchor institutions. But the principle is the same.
The virtue of the approach is that it presents an opportunity to at least do something in what otherwise would seem to be a bleak situation. It encourages thinking about a struggle for hegemony over local politics, with forces representing community well-being taking ascendency over wealth extraction by cynical capitalist firms. But does it promise a place of stability, where civically-minded folk can hold the ring indefinitely against the vampire squids? Clearly not. As long as capitalist interests prevail over the larger economy even versions of the Preston model which are successful for a period will be undermined and defeated if they do not raise the stakes of the struggle to a higher level.
So the Preston model ought to be presented as a transitional strategy, aimed at resisting the logic of capitalist accumulation in a given set of circumstances, but always requiring an increase in the political consciousness of subaltern classes if the successes achieved locally are to move forwards. The book does look that far ahead. With so much of the community wealth-building approach inspired by a mutual aid tradition which is itself most firmly located with anarchism it might be that it looks towards a spontaneous eruption of confrontation with national and global capital once there is a sufficiently large network of Preston model local councils. If so it is hard to see what grounds for confidence there might be in that hope. Localism does not have to shape up as a left wing fore for progressive change. It could settle down in the old groove of Fabian gradualism which once saw the municipalisation of the gasworks as the inevitable march towards socialism. Or it could double-down on its heavy investment in civic pride and become an haven for everything local, set in permanent warfare against the global and the foreign. It is best to be alert to the risks that might be entailed with the Preston model in order to resist them when they rear up.