HEARTLAND RENAISSANCE

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Heartland Renaissance

-- A survey of attempts to create cohesive, profitable, sustainable communities and businesses.

By Jim Miller

PROBLEMS:


First problem: Too many rural towns in poverty, most without hope.


Second problem: Governments do not know what to do, do not want to spend the money and most solutions do not work, long term, even when governments spend the money.


Third problem:
Poverty wastes valuable human resources.


Fourth problem. The return on investment is very low for most government and foundation programs to reduce poverty, especially rural poverty.

SOLUTIONS:

First solution:Each rural community needs to be planned as a self-sufficient, sustainable community. i

Second solution:Private capital investment will flow into rural communities to create the economic infrastructure needed to produce profits to the investors and the community. ii

Third solution:Incorporate each community so as to insulate from County, State and Federal Government regulations as much as possible. iii

Fourth solution:Add privately run cooperatives relative to consumer action and industrial production. Enterprises should be formed as worker cooperatives as limited liability partnership. Create a successful working model then clone it in other rural communities. Start with the Mondragon Cooperative Corporation model and transmute into the MASA Model (Mutual Aid Society of America). See: Mondragon Home Page: http://www.iisd.org/50comm/commdb/list/c13.htm; Commentary on Mondragon by Manfred Davidman: http://www.solbaram.org/articles/mondra.html

Fifth Solution:Eliminate social rank, economic despotism, influence peddling, bribery, favoritism, nepotism, crime, and other counter-productive forms of economic and social barbarism. First, take local action; start by cleaning your own house, the move outwards. To clean house on as national scale we will need to replace or greatly diminish the presence of the Republican and Democrat parties by substitution the League for a Democratic Republic. iv

Sixth Solution: Reward innovation [event if it fails], fair dealing, good faith, ethical dealing, profitability, intellectual growth and other goodies.

Seventh Solution: Create a “Local equity/loan fund” which provides start-up and grow-up funding for local businesses. v Savings from profits generated by the fund will be accumulated and use to start the SHARE COMMUNITY DEVELOPMENT CREDIT UNION (see end note 2).

The above solutions are not surprises.

What is different for the Heartland Renaissance: Rural communities which are horizontally based in both broad as well as niche markets and which are vertically integrated from production to the consumer levels, will derive gross income from the "outside" greatly in excess of expenses paid to the "outside". We need to plug the leaks in the leaky barrel and generate a substantial stream of income. Development and promotion of the farmstead concept, where appropriate, will add economic mass and speed the transition to self-sufficiency.

Advantages:

The marginal profit opportunities are based on:
1. Less expensive land.
2. Existing buildings
3. Exiting infrastructure
4. No unions
5. Populations are generally self-reliant
6. Populations imbued with the work ethic
7. Workers are stable as to location; not highly mobile like in cities
8. Lower wage costs than in city
9. Cost of living considerably lower than in city
10. Cost of transportation very low locally
11. Lower level of regulatory interference
12. Expert and heavy use of WWW for access to information, ecommerce and education:
See:
http://www.yorku.ca/crs/links.htm
13. Tax savings relative to coops and company mandated, on-site housing of employees.
14. Low level of crime
15. Greater outdoor recreational opportunities.
16. Low cost space heating and cooling
17. Low construction costs
18. Lower operating costs
19. Create and operate our own health wellness clinic and emergency, walk-in clinic.

Disadvantages:

  1. Higher long haul costs to major metro areas; However the fuel costs can be contained since we will be producing biodiesel from algae and syngas from giant grasses.
  2. Lower educational level; however this negative can be overcome by the greater use of online learnng and On-the-Job-Training.
  3. Fewer qualified persons in the labor pool; however, as the intentional communities grow and become more prospeous, they will attract “escapees” from the urban areas.
  4. Reluctance of investors to invest in rural America. See: http://www.communitybank.com.au/community_bank_solution/sustainability.htm
  5. Low level of political power; however, by cloning the intentional communities at the county and state level, and by active networking, we can fund our candidates for office.
  6. High costs of imported goods, due to transportation costs and low volumes; however, we will aspire to grow most of our own food and will grow all of our fuel.
  7. Fewer health facilities and personnel; however we will aspire to creating our own local clinics and partner with regional hospitals with helicopter air ambulance service.
  8. Higher initial investment risks to create pilot project and get to sustained profitability. Push for better science and engineering before we launch a product or business. Mutual support after launch will be critical.
  9. Foreign competition; as locavores, we will trade locally, including our own currency.
  10. Financing. By creating our SHARE Community Development Credit Union, we can support numerous equity and microloan funding groups for start-ups and grow-ups.
  11. Small town mentality -- "them" versus "us"
    Fixed, negative, interpersonal relationship which mitigate against economic and political change. Become inclusive and erode the self-imposed mental barriers.

SEARCH ENGINES:

Search Google using, "sustainable communities" and you will get 956,000 hits. Search "self-sufficient communities" and you will get 120,000 hits. Search "farmstead" and you get 55,900 hits. Conclusion: There are more than sufficient resources for planning a self-sufficient, sustainable community.

WWW LINKS and LIST SERVERS:

A review of a sample of sites follows: Loka Links: http://www.loka.org/pages/others.htm
Well organized topical listing of hyperlinks to categories of sites relating to community development. Hyper linked the Community Development Network Database
http://www.loka.org/crn/crndb.htm

This collaborative database invites users to add their information and links to their website in an ever expanding, self-generating network of interested parties. This site states it is currently under reconstruction and does not accept new information or registrants. I visited it a month ago and there has been no change. Site appears to be dormant.

The Teslia Concept Document:
http://pgw.org/telisa/Concept_Document/concept_document_9807.htm
An African Telecommunication and Distance Leaning initiative. This project purports to bring funding from government and private enterprise to create an infrastructure for distance learning dedicated to institutions, lecturers, teachers and businesses. The site is a mere outline and has no substance. The site invites contact to the author, Paul West.

Guidelines and Principles for Sustainable Community Design

This student thesis by Robert Hsin is an outline of the elements of a sustainable community. His case study is the town of Bamberton, Canada.
"Located on the shores of Saanich Inlet in Vancouver Island, the proposed town of Bamberton promises to be the prototype development for sustainability in North America. Occupying an abandoned cement works factory, Bamberton plans to convert this industrial scar into a small town of 12,000 residents over the span of twenty years. The community plans to be a demonstration of the complete spectrum of sustainability, including ecological, social, and economic concerns."

There is no mention in his report on Bamberton of any industrial or economic enterprise which would sustain the development. He concludes:
"Current Status: Despite all the careful effort placed on respecting the local environment and culture, the plans for Bamberton are still in limbo, entangled in a quagmire of governmental bureaucracy and red tape, due to environmental concerns. However, at the time of this writing, the developers were confident that the development was soon to be approved."

Appalachian Regional Commission.

This commission is both a funder of economic development as well as a resource center. The grants are mostly government-to-government grants, such as "over $100 million has been designated for water, wastewater, and transportation infrastructure projects." The Commission did sponsor an European trade show for "sale of building materials, furniture, interior furnishings, and other home products to two of Appalachia's most lucrative export markets, the United Kingdom and continental Europe". The Commission has no specific agenda to create or promote individual industrial enterprises in the rural communities.

NEW COMMUNITY THINK TANKS and INITIATIVES:

The TELEWORK Community
Telework Beat:
The company town: 2002First of a two-part series By Toni Kistner Net.Worker, 03/05/01http://www.nwfusion.com/net.worker/columnists/2001/0305kistner.html
"Regardless, numbers like these are bound to change a lot of things. Take housing. Take community development. Take traffic congestion. They will also spur a lot of technology companies into action. Look at Nortel Networks. In collaboration with California State University at Fresno (CSUF) and the Property Development Group, Nortel is getting set to break ground on the first dedicated telework community, or what it's calling an 'eVillage.'"

A well organized, self-sufficient community must have community wide access to broadband IT service and a population which is highly functional in the use of the web.
Rocky Mountain Institute: http://www.rmi.org/sitepages/art7115.php
RMI purports to be a think tank for research, consulting and education relating to energy, global warming, and sustainable development. Several emails I sent on the subject of community development were auto answered to the effect that the Institute is too busy to respond. The information on the website is mostly rehash, vague, general and of little value to the serious researcher. See for example, "Measure Whether Actions Actually Do What They're Intended to Do"
http://www.rmi.org/sitepages/pid378.phpNothing is said as to how to measure inputs and outputs relative to new investments of time, talent and money to create the sustainable community. RMI appears to be another black hole.

Sustainable Measures:
Example of content: Paul Hawken "Sustainable businesses: Replace nationally and internationally produced items with products created locally and regionally. Take responsibility for the effects they have on the natural world. Do not require exotic sources of capital in order to develop and grow. Engage in production processes that are human, worthy, dignified, and intrinsically satisfying. Create objects of durability and long-term utility whose ultimate use or disposition will not be harmful to future generations. Change consumers to customers through education." Paul Hawken. The Ecology of Commerce. (New York, New York: Harper Business, 1993), p 144.

Many interesting ideas: International Institute for Communication and Development in partnership with the Information for Development Program

The IITC Stories database lists a very diverse use of radio and Internet technology to empower individuals and communities, world-wide, toward economic and social goals. Well worth visiting.
http://www.iicd.org/base/story_read_all. Contains lists of indicators for sustainable communities and a searchable database. Good hunting!

Stockholm Project:
http://www.challenge.stockholm.se/projects.asp?ProjectId=2162

This site purports to be a "bagel hole project".
"Developing an ever-improving list of low-tech, sustainable methods to help individuals and communities become more self-reliant, self-sustainable, and autonomous. Building a low-tech infrastructure, globally, step by step, as a hedge against hi-tech vulnerability and natural disasters. Laying the groundwork for a more equitable and sane society." It purports to have collected over 250 articles on quality of life, but has no hyperlink to even one article. Another research black hole.

USDA: Rural Development Mission:
http://www.rurdev.usda.gov/rbs/oa/1890.htmThis project is "a new approach to support the development of businesses that create quality jobs. " Funding is directed to land grant colleges. There are no hyperlinks to any of the colleges, to any of the projects or the funding. Project appears to support black hole research in that it is not demonstrated that even one new job has been created.

REAP Program:
This press release by Gov. Bob Holden states:
"To date, 33 communities have completed the REAP program. Program participants have started 460 new businesses that have generated more than 5,200 new jobs at a cost to taxpayers of only $252 per job. Every $1 appropriated through REAP by the General Assembly has returned more than $162 in private investment. The program’s successes have occurred in places often bypassed by "status quo" economic development."
No hyperlinks. I cannot assess the truth of the above statement.

World Bank Institute:

UNESCO Virtual Learning Center- VSAT Network:
http://www.unesco.org/webworld/build_info/ten.html

This sites sponsors seminars, including: "Policy and Institutional Reform for Sustainable Rural Development" and states, "This course focuses on the latest thinking and good practice in rural development and sustainable natural resources management for rural poverty alleviation." You pays your money and takes your chance. Not a good site for a WWW researcher.

Southern Oregon Champion Community

A good effort to computerize rural areas. Reports on many individual projects. No mention of industrialization concept.

Canadian Industrial Research Assistance Program
http://www.nrc.ca/irap/

Canada's effort to bridge gap between academic research and practical application of technology. These projects are far ranging and appear to be a collection of pet projects by investigators who have lined up with funders who are the driving force. The site is high on press releases and self-promotion, but low on measurable results of their research efforts. The site rehashes old information and purports to advance the cause by giving seminars. You pays your money and you takes your chance. Not much help to the serious web researcher.
Asia - Pacific Regional Workshop on Equal Access of Women ICT http://www.itu.int/ITU-D/gender/documents/Asia-PacificlWrkshopKorea/Doc4-7b.pdf.

An interesting site. Contains an outline of the steps leading to computerization of vertical and horizontal factions within the Korea's social and economic structure. Much of what is said could apply to rural America.
Economic Development Montana State University-Northern http://www.montana.edu/wwwbor/EconDevelMSUN.htm The North American Rural Futures Institute http://narfi.org/http://narfi.org/This site is mostly a public relations site for Montana University. It purports to be a think tank and clearing house for "new, events and trends". I signed up for the email newsletter a month ago, but have not received one. One of its stated purposes is to link to other similar sites. With only three links, the site is a poorly managed in this respect. The site announces it will create a "web of people and institutions", but has not as yet done it. The site states it will interconnect with Montana State University Northern's College of Education, College of Technology, and College of Arts and Sciences, yet has no hyperlink or site map for each of the sub-agencies. Montana University received a $250,000 federal Dept. of Education grant for this initiative. This is what I call "black hole research" --- much goes in and nothing useful comes out.

DOE's Center of Excellence for Sustainable Development
http://www.sustainable.doe.gov/financing/intro.shtmlThis site states: "As with any successful venture, financing is an essential component of sustainable development. Learning about the range of financial resources that are available will help your community or business in planning and implementing sustainable development projects." The list of funders indicates regional, industry specific and socioeconomic strata limitations on funding. That said, this site is a good point of beginning for the serious web researcher.

USDA Rural Development Online
http://www.rurdev.usda.gov/rd/stories/index.htmThe "success stories" deal with specific grants - a sort of "spot remover" approach to solving community problems. Sample grants: fire truck, peanut warehouse, enterprise zones, rural elder and health care, low cost housing, etc.

National Center for Appropriate Technology
(NCAT
"The Sustainable Communities Program of the National Center for Appropriate Technology (NCAT) works at the local, regional, and national levels to foster the notion of sustainable development in a community context. The program aims to develop information and demonstration projects that promote a prosperous economy, a healthy environment, and an equitable society--the three pillars of sustainable community development."
While primarily an information source, the site refers to three "success stories" -- again the spot remover approach rather than a whole community approach based on industrialization.


Jesse Ventura's Vision for Minnesota:
http://www.mainserver.state.mn.us/governor/self_sufficient.html"You're gonna make it on your own."

EXISTING MODELS:

Heartland Ministries.


Bible based community, farming 18,000 acres. Heartland Dairy Farm: Second largest dairy in the nation, grossing $7,000,000 per year, with 6,000 cows and advanced milking technology. See:
http://www.heartland-ministries.org/map.htm

Mennonite Economic Development Associates (MEDA)Hati community based on agricultural output and small lending program.
http://www.meda.org/international/haiti.html


Community Supported Agriculture
Site sets forth guidelines for developing a community-based barter system for locally grown foodstuffs. Some technical assistance is provided free, some at cost. Recommended reading since this approach is one of the important components of a self-sufficient, sustainable community.

The Supermarket Connection
A cyberspace supermarket connects food and commodity producers directly with consumers. " For $35.00 per month subscribers will receive a variety of food and a handcrafted item from our diverse cooperatives in the U.S. and Mexico. This round will include fresh, organic produce from rural farmers in Mississippi, North Carolina, and California; antibiotic and hormone-free pork products from Missouri; wild rice and rice chips from California; assorted BGH-FREE cheese from the Midwest; organic Mexican hibiscus tea, Maine maple mustard and natural botanicals; handmade, original textiles from Mississippi; herb vinegars and oils from North Carolina; and other value-added, specialty goods, crafts, and products. Three and 6 month subscriptions available and you pick the start date! Order now! "

COMPANY TOWNS:


Felixstowe – Company Town
http://website.lineone.net/~patgardiner/page24.html


The birth of the company town: "The new industries of iron, steel, mining and the many others that followed, needed labour in much greater numbers and concentrations than the agricultural landscape of England could supply. Aspiring industrialists needed to attract labour from a wide area, and in the days before mechanized transport was available; this labour had to be housed within walking distance of the factory, works or mine. So the company owners built houses to appeal to workers often driven from rural poverty to the relative affluence of the new villages and towns. These could be rented to the new employees for a few pence or shillings a week, often deducted from the wages on a weekly basis."

Company Town: Scotia, California
"Throughout most of its one hundred year history, Scotia, one of the last company owned towns in America, has been a community where job security was assured and families stayed for generations. In many respects Scotia has been the ideal of the American small town. Surrounded by a landscape of exceptional beauty, an air of well-being and timelessness was evident to anyone who walked around the town or entered into conversation with a resident. It seemed to be a place that would never change."

This town thrives because of its one industry -- lumber. The danger of a true company town has been felt by many communities. When the resources are exhausted or the labor cheaper elsewhere, the company town dies. A self-sufficient, sustainable community is diversified so that the demise of any one business does not put the town out of business.

KINZUA - Profile of a Company Town
http://www2.whidbey.com/woods/article.html

Kinzua, like Scotia, is a company lumber town. Read the site to learn how competently the company town operates.


See also:
Potlach Historical Society:
"Britannia: A Company Town[film] documents the history of a small BC town tucked against a mountainside, just south of Squamish. In 1902, it boasted "the largest copper mine in the British Commonwealth." Today, it is a crumbling town fighting for its future. With the closing of the mine in 1974, and no consideration given to the looming water pollution disaster... "now, society is less and less tolerant of historical environmental pollution"... the scene was set for this "sliver of paradise [to be] cursed by its past." The background is revealed through archival flashbacks effectively blended with shots of Britannia Beach today and clips of interviews with past and present residents, scientists, environmentalists and the townsite owner. A strong sense of loyalty is evident among those who found it "a wonderful place to grow up" (the close-knit community of mine employees enjoyed family picnics, even a heated, Olympic-sized pool) and those who stayed on after the mine was abandoned. Others moved there in the 80s, lured by the prospect of new residential development including condos and a golf course. Public knowledge of the extent of water contamination from decades of acid-laden runoff led to the eventual bankruptcy of the development. There is still "up to a ton of heavy metals daily" in the ground water washing into Howe Sound from abandoned mine workings that riddle the mountain, leaving a concentration so high that "almost nothing lives in [the water]."

Programming web server software in India is so profitable to Catalytic Software, that it builds an entire "village" to house, feed and entertain their employees who work for wages at 15% of American scale.
"Ashok Kumar Madugula, a software developer who is one of the township's first residents, has quickly adapted to the New Oroville lifestyle. His apartment dome has the distinct feel of a bachelor pad. The cupboards are bare, and a table-tennis setup stands where a dining table is supposed to be. But he does not need to cook because he eats his meals in the company's makeshift cafeteria. And he no longer needs to commute in the horrendous traffic in Hyderabad, a city of 4.2 million."

MASTER PLANNED COMMUNITIES:

"Master Planned Communities" in the conventional sense are not much more than mobile home parks with fancy amenities. Some larger master planned communities have emerged from large land ownerships such as the Irvine Ranch in Orange County, CA, and the Newhall Ranch in Lost Angeles County.

Valencia: Newhall Land.
http://www.valencia.com/ranch/index.asp

This community is planned for 60,000 people. The developer, Newhall Land, hopes to establish the small town atmosphere. Except for employment by the developer, there is little local employment. The website offers no solution to inviting industry or commerce to its new town. Without local jobs, the population will have to be retired or suffer a very long commute to Lost Angeles or other local, distant communities.

Irvine Ranch: Orange County's largest master plannedcommunity.
http://www.irvineco.com/

At the build-out point, Irvine Ranch will house 200,000 people and provide employment for 250,000. The site touts "Irvine Spectrum" as the hub of employment. Access to other centers of employment is largely via Interstate 8 to the network of other traffic clogged freeways, state highways and city and county roads. At present, Spectrum is mostly a collection of consumer retail stores and consumer services.
Irvine spectrum purports to be the hub of high technology companies and research and development companies. It is surprising that the website has no hyperlinks to the employers in the "hub". See:
http://www.irvineco.com/aboutus/specdata/spectrum/dd/specdata/sit_so2.htm
COOPERATIVE CORPORATIONS: Mondragon Cooperative Corporation http://www.iisd.org/50comm/commdb/list/c13.htm
The best example of a highly successful worker owned business is Mondragon Cooperative Corporation. This company originated in the Basque region of Spain over forty years ago. It was started by five engineering graduates who designed and built a paraffin stove. Mondragon now consists of over 150 associated companies and nets over two billion dollars a year. It has 17.4 billion in assets and has 66,000 workers. Its gross revenue was up 14% or 10.6 billion (US$) for 2002 over the prior period. It is one of the most profitable companies in Spain and Europe. We would do well to emulate Mondragon by creating a similar model suited to U.S. law and its economy. Take a look at the following websites and find out for yourself, how good a model this is to solve the problems ofliaise failure:Commentary on Mondragon by Manfred Davidman:http://www.solbaram.org/articles/mondra.html
Mutual Aid Society of America (MASA): MUTUAL AID SOCIETY OF AMERICA, LLC

  1. Mission


The mission of Mutual Aid Society of America, LLC (MASA) is to create a national partnership which provides its members with a high standard of living in rural America. Consistent with this goal, is to create economically robust rural communities on a self-sufficient, sustainable basis. MASA will achieve this goal by the vertical and horizontal integration of the entire chain for food production, distribution and retail sales; light manufacturing products; and intellectual services. See enclosed:Cash Cows

  1. Organization And Structure


MASA will be organized as a Montana limited liability company as will be its subsidiary partnerships. Subsidiary partnerships will be organized to serve specific functions, such as crop production, light manufacturing, transportation, retail, meat processing, and logistical support. MASA, as the supervisory entity will provide executive and managerial services, insurance, computer technology and other services common to all subsidiary partners.

Profits will be divided between reserves for future grown, reserves for replacement, health and welfare benefits and cash payments to partners. Profits to partners will be paid on units owned. Additional units can be awarded by a LLC with approval by MASA for outstanding performance by an individual or small business. A copy of the proposed Organizational Agreement is available on request.

Jim Miller 8/8/04, revised 12/27/06 and 11/6/2008


ii
See: SHARE COMMUNITY DEVELOPMENT CREDIT UNION: SHAREcdcu.wetpaint.com



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