Working with Local Networks

Hi all. It would be great to kick this thread off with a (short, non-discursive) statement from each of us as to what our key value propositions for this conversation are, and what the value proposition needs to be for the intended users of what3ever we come up with might be.

If you write it as a 'reply' to this post (in the three dots menu bottom right of the post), they will all sit together.

My value proposition (as OCN core member):

• route to growth for OCN

• develop model to replicate - make mistakes and find out what works with you guys, so as to have better offer for others

• Test my belief that most trading intensity (and there economic value and currency proxy measures for that) will be achieved by building from small, tight networks.

I consider the value propositions for network conveners (you) will be:

• Opportunity to shape OCN offer to suit your needs

• Strong support from OCN in building your network - we really want to understand your members needs and make sure we meet them - we'll spend lots of time on this, and try to respond appropriately as we build.

• We can come in as 'experts from London' (bullshit but we know it works) and get ppl to listen / take it more seriously.

Key benefits as I see them right now from my perspective:

• As a way to keep at least some of the local economy on the road through the Covid-19 crisis

• As a way to build the profile of the Kirklees Solidarity Economy Network so that it is seen more widely as a valuable player in the local economy

• To build wider awareness of co-operative solutions, not just to the current crisis, but over the longer term.

And opportunities:

1. Working with Kirklees Council

2. Working with Preston City Council (I'm writing to them right now)

3. From the above, to spread the word through many more local authorities via - in part - the Co-operative You nails Innovation Network - https://councils.coop

Issues:

Limited time capacity personally so I'd quite like that time to be paid for, which plays into the broader question - how do we do this quickly and effectively and on a sustainable monetised basis. My assumption right now is that local authorities will pay the bill, and businesses in the network will - over time - begin paying a membership fee and/or transaction fees to move to a long term sustainable business model. I'm also banking on active support from Dave/Dil so I'm not out on a limb when a local authority says yes. And I'd like solid documentation to refer to - and happy to help write that as we go.

Questions: ownership and governance - as local/regional nodes, do we become members co-owners of the core co-op? What's the angle there? I have more questions but will add them elsewhere to avoid over-muddying this thread.

Given the exchange about individuals, it sounds like the opening pitch is as a B2B network, with potential for B2C, and even C2C down the road.

Exactly so. Sole-traders are a corner case - loans to these (and simple partnerships with less than 4 members, too) count as consumer credit and are heavily regulated. We want quickly to nail the regulatory issues, but b2b til then. We allow sole traders but require them to stay in credit.

The real reason for not including individuals at the off is not regulation, though, but economics. In late capitalism, individuals are not value producers - they earn as wage slaves (even many self-employed come under this - as they depend on things like Uber app as their means of production), and spend as consumers - neither of which is a value producing exchange, only an asset transfer.

So in a Mutual Credit, individuals may be happy to buy with their credit, so businesses end up with large positive balances, but then the music stops - the business can't use anything the individual produces (unless they employ them - see later).

This is why LETS schemes produce community, but no economy - ppl swap tomatoes from the garden and babysitting, and DIY, but all in their spare time.

So we start with value-producing entities - SMEs. But of course we urgently need to connect individuals into this network - especially in the UK, where there is so little primary value production (decline in industry since the '79 has been precipitous and continuous under all govts) - many SMEs are retailers/wholesalers and in effect self-exploiters providing route-to-market for megacorps; their 'value production' limited to local warehousing and demand-sensing.

This is important for local networks - the most important members will be those local value producers who actually make stuff / perform valuable services for local SMEs. Bringing these into trade relations which they experience as rewarding will give a core motor for a network from which to build.

What we propose (and which has been very successful for Sardex) is to introduce B2E (Business to Employee) models. In this model, an SME 'spawns' a child network for its employees. Credits in that network can be used to buy credits for use in the B2B network. Employees redeem those credits by repaying some of their wages. Typically an SME might offer some discount on this - so that it encourages employees to use MC, and improves its cashflow.

C2C is not a category that works in MC economies - every member needs to be a value producer to access credit. We have other thoughts on how to address this, but this is long enough!

Just had a call with the chair of my local Co-op Party branch. He's sharp, and I respect his take on most stuff. He liked the idea when I explained it, and thought that it might have particular value as things calm down and thoughts turn to how to get the economy back up to speed, when lots of businesses will be totally fucked as regards cashflow. He agreed that it would also have value here and now, and was worth pursuing, and we concurred that the shorter term target group was smaller, but may be highly motivated. The key , as ever, is in reaching them with credible pitch.

Great. Yes, I've been experimenting with various pitches - it's very difficult when a) they don't know what mutual credit is - it's much easier if they've already read something about it. Otherwise I can hear myself sounding like a snake-oil salesman. b) you're recruiting to a national network - I think local networks are a much better bet.

We could do with a range of different pitches - to local authorities especially. Be very interested in how you get on with Kirklees and Preston - although you know them personally, don't you? Again, much more difficult if we don't know them.

I was disappointed with the response from co-ops - especially as we had a great piece in Co-op News - https://www.thenews.coop/145728/sector/retail/platform-co-op-mutual-credit-system-launches-in-the-uk/. I guess not everyone who works for a co-op has co-op values (or knows what Principle 6 is, I found), and they have to bring it up at the next meeting (where they might not describe it properly and it can just be passed over).

Here are my perceived benefits (most have been said already in different ways).

• To spread mutual credit – essential if we’re going to stop wealth being siphoned out of communities.

• To help recruitment – recruiting to a national network will be difficult – best route is via community and sectoral nodes.

• And not just recruitment, but trade. The small businesses I’ve talked with do most of their business locally.

• To enable trade in local economies when there’s no money around.

• To build successful models that other communities can replicate.

NB:

Excited by this sentence: ‘My assumption right now is that local authorities will pay the bill’ - and they should.

Yes, Dil and I will do our best to offer support every step of the way. We want successful local networks.

As I see it, the OCN will be owned and controlled by its members – and its members will be a) local or sectoral groups; b) national orgs like the Phone Co-op; c) other groups such as the admin group (currently Dave, Dil, Oli, but this will grow).

Individuals (other than sole traders) can produce labour.

Sardex – have a successful B2E scheme – now 30% of their turnover.

I think maybe we need a forum on OCN (or embed(?) the Loomio thread), so we can have these discussions in public – key people would be interested in this, and it would stimulate thought and discussion). (we can have a private channel too).

Dil, "This is important for local networks - the most important members will be those local value producers who actually make stuff / perform valuable services for local SMEs. Bringing these into trade relations which they experience as rewarding will give a core motor for a network from which to build."

That's spot on, and of course, employees are key players in MCC. Many businesses like grocers provide employees with discounts anyway, so selling MC credits at a discount can be a way of bringing them into the game at no additional cost.

however, selling your money at a discount is simply and surely to make it worth less?
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what is in it for business ( https://docs.google.com/document/u/1/d/1VkDN3axJqJms5JDrFuiIj6zWVdmBHtUbY0RCxa-lj6U/edit )