Short Circuit: Strengthening Local Economies in an Unstable World

Creating More Elbow Room

To mark the fifth anniversary of Feasta co-founder Richard Douthwaite's death, and in light of current world events, we're featuring this chapter from his book Short Circuit, which is perhaps even more relevant today than it was back in 1996. It discusses the pernicious effects of world trade at present and the need to move towards a more human economy, and then describes three new approaches that could be taken.

Short Circuit

Short Circuit: Strengthening Local Economies in an Unstable World
by Richard Douthwaite. Expanded online edition published June 2003 with updates by Richard Douthwaite, Joanne Elliott and Caroline Whyte. Read Short Circuit online in its entirety.
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The global economy can no longer be relied upon to provide the necessities of life. Even in wealthy countries, the vagaries of free trade and the unimpeded movement of capital pose a threat not just to job security but to food and energy supplies as well.

Short Circuit proposes that each community build an independent local economy capable of supplying the goods and services its people would need should the mainstream economy collapse. It details the financial structures necessary for self-reliance, and it describes the techniques already in use in pioneering communities across the industrialized world. These inculde local currency schemes and community banks that enable local interest rates and credit terms to differ from those in the world economy. Efforts to meet local food and energy requirements using local resources are also reviewed.