Are small-scale economies the answer?

Some people see small, local economies as the answer to current problems.  Currently the catch word is Transition as in the Transition Town network as reported in The Guardian.

Generally speaking, the Transition vision is of a move towards self-sufficiency at the local level, in food, energy and much else, but the specifics of what “getting it right” might look like were never handed down from above, says the article.

 

It could work for a few small groups but as a solution to the world economic problem I have to be skeptical.  This world has had lots of experience with local, small-scale production.  In fact economic theory starts with firms that are too small to influence prices with their purchasing or selling decisions.

lalolalo_Running_pigOne of the problems with this approach is the dynamics of small communities.   Some people think of small communities as being utopia where everybody is friends, cooperates and decisions are made by consensus.  

Those of us who live or have lived in small communities know this a long way from reality.  People have disagreements which never get resolved, even if one party leaves the community.  Us guys lived on a British Columbia coastal Indian reservation for four years.  Here where it was very difficult to leave, lots of people did not speak to each other.  They had a long tradition of feasts and large family dinners but they would have up to three or four hundred people eating  in the recreation center and one could almost hear a pin drop because it so quiet from people not speaking to each other.  Some of their leaders described the reservation as a prison camp.

We now live in a small rural community of mostly white people.  This is not so bad but there are still many people who don’t speak to some others.

I figure economics is about relationship as expressed in the exchange of goods and services.  When you try to go local you are cutting yourself off from lots of people who thanks to modern transportation are within visiting and trading range.  No small community is going to have all the resources it requires to maintain itself.  The local natives in our area needed arrows for hunting.  There was some usable stone in their area, now on a major highway.    Better stone was several days away and the best, obsidian, was found in what is now the United States.  Trying to go local limits your range of consumption.

The important thing to ask with this type proposal is will it solve the overall problem and that depends upon what the problem is.  I think the problem is that we have used up the most easily accessible energy and mineral resources.  While there may be lots of resources left it will take a lot of energy to retrieve them.  It may be there are some small deposits of energy or minerals which can easily be mined in which case some small economic communities  could fare reasonably well.  Another question:  would small-scale agriculture provide enough food for seven billion people?

This world has had several millenia of experience with local economics.  Since  the industrial revolution most of us have enjoyed the products and social interaction of dealing with people around the world.   I’m not sure I would want to lose that and I am not worried.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: