3. Economic Democracy
Page currently under construction. These are living documents, so are updated frequently.
3.1: The implementation of Community Municipal Investments (CMIs) based on the University and city of Leeds experience & success.
This is not just a community grant, it is literally investing in your local community & it’s needs. And while the genisis of the CMIs is predominantly about moving toward Net Zero at a local level, it’s principles I believe can & should be extended to meet various community needs.
More technical & academic details for those interested:
Community Municipal Investments: Accelerating the Potential of Local Net Zero Strategies (University of Leeds).
Financing for Society: Assessing the Suitability of Crowdfunding for the Public Sector (University of Leeds).
A brief story of CMIs success from an interview on the New Economy (the full interview is worth a watch, but I’ve linked it to the relevant part).
In short; CMIs are bonds created by the HCC or a ATO/ASX/ASIC registered third-party with the HCC underwriting the risk. This allows local communities to directly invest in projects they themselves (not the HCC) determine the need for without the normal risk associated with development projects. The experience in Leeds was for roof-top solar, however I believe it can be extended to any community decision like insulating homes, or just regenerating green spaces. It even allows for those not directly in the local to financially assist & receive small return on projects plus “pay forward“ a certain amount to help those who might want to invest but otherwise lack the capital to.
3.2: A reduction in rates, taxes, etc., on Democratically Structured SMEs such as Co-ops & Mutuals.
To facilitate & encourage the adoption of Workplace Democracy as the new standard of work, HCC I believe should encourage employee & stakeholder co-ops, mutuals, & other democratic structured Self, Small, Small-Medium, and Medium Enterprises by reducing the first three years of operational & start-up burden with lowered or removed taxes, rates, & fees (on the proviso they are paid back, with no interest, to allow financing of other Democratic SMEs).
The data from the 2022 Business Council of Co-Operatives: Mutual Economy Report (though of course biased) demonstrates that Hobart could be well placed to take the lead on a economically steady & resilient, ecologically forward thinking, & democratic business community.
This would also apply to pre-existing businesses & enterprise that decided to take the next step & democrotise their internal processes. Consider Germany, Spain, Italy, France, Scandinavia, or a great many places in North & South America, India, and so on…
A good hour long video essay on this (while I don’t fully agree with all points) can be watched here.
Further to this; because of their material, social, economic, & cultural benefit locally, they would recieve similar reduced ongoing rates, fees, taxes., as do local charities & NFPs. But, these Democratic SMEs would be able to be revenue positive and create profit, the use of which would be determined by it’s members.
3.3: Proactive Financial Transparency in Real-Time, available easily on one HCC page about what for and where your money goes, and how much of it comes in and goes.
[practical example here] This would allow you to make informed decisions when utilising direct democracy.
3.4: More direct control over your rates, taxes, etc. via direct democracy.
This includes; how much you & your community are (begrudgingly) willing to pay, but more importantly where what you pay goes towards (e.g. Potholes, community garden, youth engagement activities, etc.). See Empowering Communities 4.1 for the technical details.