“Creating Prosperity Together”: How the social economy model saved the English city of Preston

Publicerad denFörfattareKontrast.at

For a long time, Preston was the centre of industry in England. But when the city’s big companies decided to move production to low-wage countries, the economy collapsed and Preston plunged into a deep crisis. The people of Preston didn’t let it get them down, however, and together they rebuilt their economy. Instead of international corporations and low wages, they relied on local production and co-determination. Thanks to the “communal prosperity” model, Preston is booming again today.
Preston was the economic engine of England for a long time. In the city in the northwestern county of Lancashire, the textile industry boomed in the 19th century. Products from Preston were exported all over the world, and the city grew rapidly. The boom did not last forever, however. After the Second World War, large parts of English industry migrated to low-wage countries. The economy crumbled and with it the city. Just a few years ago, Preston was considered one of the poorest areas in England.
But then came the turnaround starting in 2012. The city reorganized itself to boost its own economy. It was understood that no help would come from big investors or the government in London. The results of their effort can be seen: Unemployment is falling, the city is growing, and the economy is booming. And how did the people of Preston do all this? With an idea called Community Wealth Building.
Community Wealth Building: Business for the People, Not the Corporations
But what is community wealth building? Broadly speaking, it’s an approach that shapes the economy to serve local people, not managers in corporate headquarters or investors in tax swamps. Preston achieves this primarily through four principles:

Working with what’s there
Producing and buying locally
creating good working conditions
Shaping the economy

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Preston’s “Communal Prosperity”: Working with what’s there
Preston knew that no outside savior would come to help the city. If they wanted to change their lot, the people of Preston would have to tackle it themselves. So the first step was to look at how the city’s economy was set up at the time.
While many businesses had left Preston, there were also institutions that were still in town and would remain. These included the local university, a housing cooperative, the pension fund, the town hospital, and the local government. These institutions were called anchor institutions because they were firmly anchored in the city and would not leave.
The anchor institutions spent many millions annually. The hospital needs fresh food and laundry every day, the housing cooperative needs materials and people to maintain the houses, and the local administration needs stationery and furniture. The list goes on and on. These expenses were looked at by the city government. The result: these institutions hardly ever shopped in Preston. Only about 5 percent of the spending was done in their own town. The rest of the money went to other parts of the country and the world.
Produce locally, buy locally
To boost Preston’s economy with the “communal Prosperity” concept, these anchor institutions had to be persuaded to spend more money in their own city. Since they all had a vested interest in seeing the city do well, all institutions were willing to buy more locally. The result of this was that the order books of local businesses filled up. This allowed those businesses to hire new people. Now, more people had jobs and more money in their pockets to spend again. That further boosted the local economy.
Where the increased demand from anchor institutions could not be met by existing businesses, new ones were started. Preston University assisted the start-ups with its expertise. 
By having anchor institutions, such as local government, buy more from their own city, more jobs could be created in Preston. (Foto: pixabay/PaulCosmin)
Co-determining the economy
There was also a plan for when new companies were founded. What should not happen is that all the profits end up in the boss’s pocket and the workers have no say. The people of Preston should decide for themselves how they want to shape the economy of their city and also reap the fruits of their own labour. The solution to this: cooperatives!
The university supported the people of Preston in setting up cooperatives, in which they themselves can determine how work is done and what is done with the profits. This, it said, strengthened co-determination in the city and meant that the profits generated ended up in the workers’ pockets rather than in investors’ accounts in tax swamps. The cooperatives also had another positive effect. Because the workers themselves determine their company policy, their jobs are not outsourced to low-wage countries.
A wage you can live on
It was also important to the people in Preston and its “communal prosperity” concept that everyone should be able to live on their wages. What is the point of working in a cooperative or one of the anchor institutions if the money is not enough to live on? That’s why most local institutions, businesses and cooperatives decided to pay a wage that is above the minimum wage and that people can live well on. Now that people have more money in their pockets, they were able to consume more, and the local economy continued to grow.
At the same time, however, a lot of money was put into providing a good education for the city’s workers. The city’s university provided training and counselling, and other anchor institutions such as the local government and the housing cooperative also invested more in the education and training of the local workforce.
Preston’s “Communal Prosperity” Model as a model for success
Preston’s four principles worked strongly together. Anchor institutions looked to their purchasing not only to ensure that local production took place, but also that companies paid their workers well and gave them a say. While not everything could be produced and sourced locally, the percentage of anchor institutions’ spending in their own cities increased sharply. When the Community Wealth Building project started in 2012, it was 5 percent. In 2016, it was more than three times that, at 18 percent!
That wasn’t the only thing that had improved in Preston. From 2014 to 2017, unemployment was cut in half. At 3.1 percent, it was below the statewide average of 4.6 percent. The city’s economic development was so successful that it became the most up-and-coming city in the country, overtaking the capital London in quality of life.
Mondragón is the largest cooperative in the world. For Preston and Cleveland, Mondragón is a source of inspiration. Mondragón workers built the roof of the famous Guggenheim Museum in Bilbao, for example.(Foto: Unsplash/Jorge Fernández Salas)
Social business: Global trend
Preston’s success has created a buzz and encouraged imitation. Today, there are 20 other cities and communities that also use the Community Wealth Building approach. This approach did not come out of nowhere, however, but has its roots in the U.S., in the former industrial metropolis of Cleveland. Similar to Preston, industrial companies in Cleveland migrated to low-wage countries. The result was a fallow economy and a decaying city. However, through a regional economic plan and the formation of cooperatives, Cleveland achieved economic recovery.
Cleveland, in turn, got its inspiration from the small Basque town of Mondragón. There, the Spanish Civil War had devastated the local economy. Under the guidance of the left-wing priest José María Arizmendiarrieta, a technical college and several cooperatives were founded in the small town. Today, Mondragón is the largest cooperative in the world, with branches in 31 different countries and over 80,000 employees. The entire cooperative federation is democratically run and owned by the workers. Läs mer…

Dutch startup uses air bubbles to remove plastic from rivers

Publicerad denFörfattareneuezeit.at

Dutch startup “The Great Bubble Barrier” has been building “air curtains” and removing tons of plastic from rivers since 2017. The technology is simple and promising. With the help of pipes in the water, a curtain of air is formed. Fish and other river dwellers can swim through it, while plastic waste is intercepted. 
The Amsterdam-based startup has been working on the technology behind the so-called “bubble barrier” for seven years. Initial pilot tests started in spring 2017, and the first filter system has been in place on the River IJssel in the Netherlands since November of the same year. Even tiny pieces of plastic with a diameter of one millimetre can be fished out of the water with it. The startup is currently testing whether even smaller plastic particles, i.e. less than 0.05 millimetres, can be filtered with the air barrier.
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Simple technology, clean rivers, healthy people
The way the air barrier works is simple. Pipes at the bottom of a river or canal pump air into the water. Combined with the current, the plastic pollution is collected together on one bank. From there, the plastic goes into a collection system. Then the trash is separated and can be disposed of properly. The start-up’s invention would also be great outside the Netherlands, because Austria’s rivers are also full of trash.
The WWF reports that almost two-thirds of Austria’s waters need to be “cleaned up.” Only 15 percent are still in “very good” condition, the paper states. Reasons for the pollution include the heavy construction density of some regions, as well as the industrial usage – such as sewage disposal or cargo shipping – of rivers. Environment Minister Gewessler (Green Party) complained about the “littering of our environment and waters”, but the interim report of the “Action Plan Microplastics” is still pending.
A stream of air bubbles propels the trash into a collection bin (Photo: The Great Bubble Barrier®)
Nearly 80 percent of plastic pollution in the sea comes from rivers
The technology from Holland not only holds promise for cleaning up freshwater streams, but also contributes to the cleaning of the oceans. Around 80 percent of plastic in the world’s seas comes from rivers. Currently, it is estimated that there are between 100 and 150 million tons of trash in the oceans. More than three-quarters of this is plastic. Every year, rivers wash between five and thirteen million tons more into the seas. Four million tons come from just ten major streams.
“We tested for six months in Amsterdam, and during this period we removed around 85 kilograms of plastic per month from the water,” say the founders of “The Great Bubble Barrier.
Projected over a year, that’s more than a ton of plastic waste. This is good not only for the environment, but also for people. Because the trash doesn’t just stay in the water. Fish and other sea creatures eat the plastic pollution. These then get back into the human organism via food, and there the – so called – microplastics can even lead to hormonal changes. Clean oceans, intact environment, healthier people – that seems to be the promise of the air curtain technology from the Netherlands. Läs mer…

Royalties for the Environment: Musicians give Earth Songwriting Credit

Publicerad denFörfattareSpeziell.at

Brian Eno has a charity organization called Earth/Percent. It encourages musicians to donate a portion of their earnings to environmental protection. They do this by making the earth a co-writer of their songs. The resulting income is then donated directly to environmental, research and climate protection projects. 
Most people know musician Brian Eno as the co-founder of the band Roxy Music. Still others may know him as the producer of music legends such as David Bowie, Talking Heads and U2. Few may know that he composed the startup music for Windows 95 – ironically, on an Apple Macintosh. 
Brian Eno is and was many things: musician, producer, electronic music pioneer and visual artist. His latest project: the charity organization Earth/Percent.
Earth/Percent: Income from music royalties for climate protection
The charity organization campaigns for more sustainability in the music industry. It collects money to donate directly to climate protection and environmental organizations. The idea behind it is quite simple: 

Musicians make the earth the co-author or co-songwriter of their songs. How much percent they give away, they determine thereby themselves.
The Earth receives royalties, i.e. income from the rights to the songs.
The income is used to support climate protection projects and environmental organizations

The first musicians have already joined in, including Fraser T. Smith, Jacob Collier, Anna Calvi, Mount Kimbie, Erland Cooper, Rostam Batmanglij and Aurora. 
On Brian Eno’s latest single “Line in the Sand, Earth is already co-writer, alongside Hot Chip and goddess.
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Earth/Percent’s goal: $100 million for climate protection by 2030
The organization aims to raise around $100 million for climate protection by 2030. The money will be used to support not only environmental protection organizations and research, but also people who already have to live with the effects of climate change. After all, the music industry still emits too much CO₂, too. 
“Many in the music industry want to do something about the climate crisis, but don’t know how. That’s why Earth/Percent works with scientists and experts to identify and fund the most promising solutions.” Brian Eno, founder of Earth/Percent
The music industry: music streaming consumes an extreme amount of electricity
In the UK alone, live concerts cause around 405,000 tons of greenhouse gases per year. Mainly from transport, flights, consumption and waste. And platforms like Apple Music, Spotify or Pandora also consume extreme amounts of electricity to run their music streaming platforms. 
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite https://speziell.at/ / Ingo Geiger as the original source/author and set a link to this article on Scoop.me. https://scoop.me/musicians-credit-earth-songwriter/
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A Berliner builds tiny houses and gives them to homeless people

Publicerad denFörfattareIngo Geiger

The association Little Homes e. V. builds tiny mobile houses and gives them to homeless people. To date, it has built nearly 248 of these shelters. In the meantime, 148 former residents have found a real home again. For them, the gift was a turning point. The small houses give them back security, peace and hope. Critics see it only as a temporary solution and worry about minimum standards.  
There is not much space. The 3.5 m² of living space is just enough for a bed, a shelf and a small kitchenette. And yet Uwe S. is happy, because for him, it means security, peace and new hope. For 15 years he was homeless and slept on the streets of Berlin. Then Sven Lüdecke gave him a “Little Home”. He lived in it for two years. In the meantime, Uwe has a flat with electricity and running water again and is standing on his own two feet. The “Little Home” was a turning point.
“Little Homes”: Small houses for homeless people
Sven Lüdecke is the founder of the association “Little Homes e. V.“. Since the end of 2016, he and a team of constantly changing volunteers have been building small houses and giving them to homeless people. Nuremberg, Cologne, Berlin: There are already 248 of these small shelters across Germany. For many, they are a stepping stone back into society: 148 former residents have now found a proper flat. 
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The houses are simply built: Four walls made of pressboard, a lockable door and a small window. They also have a mattress, a camping toilet, a fire extinguisher and a first aid kit. There is no electricity, no running water and no heating – only insulation made of Styrofoam. This protects against extreme cold. The residents usually provide their own water, for example, from public toilets or drinking water points. A “Little Home” costs around 1,000 euros. 
One important detail is that the houses are mobile. They are on wheels. If this were not the case, the association would need a building permit for each Little Home. 
Most of the houses are located on private parking lots, but the association cooperates with cities, districts and municipalities. For example, the Berlin district of Kreuzberg provides 40 parking spaces.
The houses are mobile – they are later on wheels and can be moved to different locations. (Photo: Little Home e.v.)
Criticism: The “Little Homes” do not meet the minimum standard of accommodation
Lüdecke’s project is also met with opposition. Critics suggest that minimum standards of housing are neglected. The tiny living space is inhumane and not a long-term solution. 
Werena Rosenke of the association “Bundesarbeitsgemeinschaft Wohnungslosenhilfe” also takes a critical view of the project. She told Deutschlandfunk that “Little Homes” are not safe. They are often located in remote places. This is dangerous, especially for women. Nevertheless, she thinks it is a good idea to give homeless people some security and get them off the streets for a short time. The goal should be a real flat with a social worker to look after them.
Tiny houses for homeless people: No solution – but a temporary fix
Lüdecke sees it that way, too. He also does not see his project as a solution to the problem of homelessness. That is the task of politicians. The “Little Homes” are only a temporary solution, he says: 
“We are not the solution to the problem of homelessness, but a solution before the solution,” says Sven Lüdecke, Little Homes founder (interview).
There are now regional offshoots of the association in many cities. The simple construction of the Little Homes makes it possible. In the beginning, it was just a matter of building a reasonably safe shelter for homeless people. In the meantime, the association also helps with visits to the authorities, with applications for social benefits or with the search for a job. For this purpose, the association hires social workers or works together with them.
Critics warn that the small houses do not meet minimum shelter standards and could also lead communities to allocate fewer resources to the homeless. (Photo: Little Home e.v.)
Risks: Municipalities neglect their legal duty to help homeless people
In Germany, municipalities are legally obligated to help homeless people. They must provide humane housing for those affected. Rosenke emphasizes that this is a unique selling point that must not be jeopardized under any circumstances. 
As good as the idea of “Little Homes” is, it could lead to municipalities neglecting their duty. After all, people are no longer homeless. 
This concern is not entirely unfounded. You can see this, for example, in the example of the food banks. Food banks give donated food to people with low incomes. The problem is that the state relies too much on the aid and remains inactive itself. The symptoms of poverty are alleviated, but the causes remain. Inflation, poverty in old age and precarious working conditions in the low-wage sector are not being addressed, according to the fears of critics.
Homelessness on the rise in the EU, in Germany and also in Austria
According to a report by the German government, there are about 263,000 homeless people in Germany. According to Amnesty International, there are just under 20,000 in Austria, and more than 700,000 people in the European Union.  
However, the number of unreported cases is likely to be much higher, because many of those affected are not even recorded by the system. They are invisible because they are not registered anywhere, have no social insurance or are staying with friends and acquaintances.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite / Ingo Geiger as the original source/author and set a link to this article on Scoop.me. https://scoop.me/tiny-houses-homeless/
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France: Montpellier makes public transport free of charge

Publicerad denFörfattareIngo Geiger

After two successful test phases, the city’s decision has been made: bus and tram travel will become free for Montpellier’s residents. From December 2023, none will have to pay for public transport. In this way, the city aims to reduce air pollution, cut emissions and support disadvantaged groups. The measure is part of a 150 million euro package that also includes the construction of new bicycle lanes. 
Montpellier’s city government is making public transportation free for all. From December 21, 2023, the city’s 300,000 inhabitants will no longer have to pay anything for buses and trams. In doing so, the city not only wants to reduce air pollution, but also make it easier for socially disadvantaged people to get around.  
The measure is part of a 150 million euro package to make the city sustainable and emission-free. In addition to free public transport, Montpellier plans to introduce environmental zones and expand bicycle lanes.
Residents can register with the “M’Ticket” app to receive the free tickets. To do so, they need a valid ID card and a registration address. 
Montpellier’s Mayor Michaël Delafosse tweeted: “By introducing free transport, we are bold in taking a great measure of social justice, of progress, which works for the ecological transition,”

Par la gratuité des transports, nous faisons preuve d’audace en prenant une grande mesure de justice sociale, de progrès qui œuvre pour la transition écologiqueDès le 21 décembre, les transports publics seront gratuits toute la semaine pour touts les habitants de la Métropole pic.twitter.com/E0r6TWctCT
— Michaël Delafosse (@MDelafosse) February 2, 2023
 
Two successful trial phases: 160,000 people use free tickets
Montpellier has been testing free public transport since 2020. The measure now adopted is the result of two successful trial phases:

Phase: free tickets for residents on weekends (from September 2020).
Phase: Free tickets for young people under 18 and seniors from 65 (from September 2021). 

The first phase already resulted in 12 percent more residents using public transportation on weekends. The second phase was similarly successful: 160,000 residents took advantage of the offer. Even after the end, 60 percent continued to use public transportation. 
Previously, the city supported motorists with free parking hours. The current government abolished this rule and financed the first trial phase with the 1.3 million euros released. 
France: Public transport is already free in 39 cities and towns
Montpellier is not the only French city where residents do not have to pay anything for public transport. Since France handed over traffic management to municipal authorities in 2015, the concept has spread to 39 cities and towns. Among them is the port city of Calais, the Marseille suburb of Aubange and the municipality of Niort. 
Lyon, Paris, and Marseille are still hesitant to implement free public transportation. This is because they are way more dependent on ticket sales to finance their public transport (Photo: Rob Potvin / Unsplash)
Depending on the municipality or city, the measure is financed differently: in Dunkirk, for example, via the mobility tax. In France, private and public companies with more than 10 employees must pay this tax. With 200,000 inhabitants, Dunkirk is the second-largest city in France with free local transport after Montpellier.
Paris, Lyon and Marseille: only partially free local public transport
France’s major metropolises (Lyon, Paris, Marseille) are still hesitant to implement free public transportation. This is because they rely on ticket sales to finance their public transport. The share of total costs there is 25-40 percent. In smaller cities, on the other hand, it is only 10 percent. 
Nevertheless, there are also offers in France’s big cities to relieve the burden on low-income earners, young people and pensioners. In Paris, Strasbourg and Lille, for example, young people under 18 are allowed to use public transportation free of charge. Passengers in Nantes and Rouen can ride the trams, bus lines and subway for free on weekends. Läs mer…

Less hustle and bustle and loneliness: supermarket in the Netherlands has “chatting checkouts

Publicerad denFörfattareKontrast.at

The Dutch supermarket chain Jumbo has introduced slower checkouts for the first time in 2019. The idea is to give customers more time not only to pay and pack, but also to talk to the cashiers. The aim is to counteract the rampant loneliness, especially in old age. In the meantime, 200 of the 700 “Jumbo” stores in the Netherlands have such chatting checkouts.
One problem faced by older people worldwide is loneliness. Family members have moved away, friends have died or fallen ill. In addition, hectic schedules and unfamiliar techniques and processes make everyday life more difficult. In urban areas, this is compounded by anonymity. Going to the supermarket means getting out of one’s own four walls. At the same time, everything has to happen quickly at the checkout. A quick greeting, then you have to quickly throw all the groceries into the shopping bag and pay – that’s stress.
Jumbo stores have “chatting Checkouts to fight loneliness in the Netherlands
In 2019, the Dutch grocery chain “Jumbo” tried something new. As part of a campaign against loneliness by the Dutch government, they installed slower checkouts.
According to a survey, one in ten people in the Netherlands feel lonely. Of the 1.3 million adults over 75, as many as one in three say so.
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The government’s campaign addressed older people on the one hand, encouraging them to get out and do something. On the other hand, it appealed to everyone in the population to take a look at their own elderly relatives and neighbors in the house.
The supermarket chain has addressed the issue in its own way. The chain has over 700 stores in the country and has set up a “Kletskassa,” or “chit-chat checkout,” to take the stress out of paying and give people a chance to talk. The first of these cash registers was installed in the town of Vlijmen. The idea was so well received that the company has introduced chattering tills in 200 stores nationwide. In addition, chatting corners have been set up where customers can meet for coffee. The supermarket chain’s employees are also trained to recognize when someone is not feeling well – and to talk to them.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite / Kathrin Klösel as the original source/author and set a link to this article on Scoop.me. https://scoop.me/netherlands-chatting-checkout/
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Bolivia: Less poverty and booming economy through nationalisation of mineral resources

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Bolivia, a country in the Andes, has developed strongly in recent years. Since the left-wing president Evo Morales took office, poverty in the country has been more than halved, life expectancy has risen by four years and the economy is booming. Bolivia has achieved this through the nationalisation of its mineral resources and an economic policy that takes care of the poorest in the country.
Bolivia was long considered the poorhouse of Latin America. Although the country is rich in raw materials, most of the profits from their extraction went to large corporations from Europe and North America. This changed when the indigenous trade unionist Evo Morales was elected president in 2006. He nationalised the country’s raw materials and introduced far-reaching social programmes to help the impoverished population. As a result, during his time in office, Morales was able to more than halve poverty in Bolivia and the economy grew faster than in almost all other Latin American countries.
From poverty to the presidency
Evo Morales grew up in extreme poverty in the highlands of Bolivia in the 1960s. Four of his brothers died at a young age. He attended school for only six years before helping to feed the family by selling sweets and working in a bakery. As a young adult, he became active in the local coca farmers’ union and took on more and more responsibilities.
The country’s government was controlled by the white upper class, although the population was largely indigenous. The country’s political situation had been marked by wars and coups d’état since independence in 1821. The economy barely moved. Much of the population, especially indigenous peasants in the highlands, lived in abject poverty and had little say in the country’s politics. In addition, the country’s mineral resources were controlled by international corporations. The poor population had hardly anything from the country’s wealth of resources.
The population hardly benefits from the mineral resources of their country. (Foto von Alex Azabache / Unsplash)
Morales wanted to change that. Together with other trade unionists and activists from the indigenous population, he created the Movimento al Socialismo (MAS) party. Their goal was to nationalise the mineral resources, strengthen the rights of the indigenous population and expand the welfare state. Despite opposition from the country’s political elites, Morales was elected the country’s first indigenous president in 2005 with an absolute majority. Under his presidency, which lasted until 2019, the country changed fundamentally.
Nationalisation of mineral resources
One of the first major steps taken by the Morales government was the nationalisation of Bolivia’s oil and gas resources. By law in 2006, the large international corporations that had controlled these mineral resources until then were required to sign new agreements with the state oil and gas company Yacimientos Petroliferos Fiscales Bolivianos (YPFB). In some cases, YPFB took over the extraction of the raw materials completely, in some cases only shares in them. The Morales government took a similar approach when it nationalised the mining industry in 2007. The following year, the Bolivian government also nationalised the largest company in the telecommunications sector.
Through these nationalisations, the government now not only had more control over its own resources, but could also use the profits from their extraction for social and infrastructure projects.
Evo Morales was elected Bolivia’s first indigenous president in 2005. (Foto: Cancillería Ecuador / CC BY-SA 2.0)
The fight against poverty
When the Morales government took office, Bolivia was the poorest state in South America. Morales experienced the bitter poverty of the population himself. His goal and that of the MAS movement was to end this poverty. This was achieved mainly in three ways: strengthening the economy, raising wages and expanding the welfare state.
With the income from the extraction of raw materials, the government modernised the country’s infrastructure. Between 2000 and 2015, public investment doubled. Roads, hospitals, and schools were built. An important focus, however, was the development of rural areas. Through land reform, small farmers gained access to land that was previously in the hands of large landowners. In addition, the government supported food prices to help small farmers and ensure the country’s food security. At the same time, oil and gas refineries were built not only to export raw materials, but to keep value added in the country.
With a stronger economy, higher wages could be paid. A particular focus was on the incomes of the poorest in the country. That is why Bolivia’s minimum wage was quadrupled during Morales’ term in office (2006 to 2019). More money in their pockets meant that Bolivians could now consume more. This further boosted the economy.
Numerous social programmes were created to reduce poverty even further. The universal basic pension Renta Dignidad is particularly central. Many thousands of older Bolivians received a pension for the first time. In addition, poverty-stricken families were supported if they kept their children in school instead of sending them to work. Free meals were also introduced to further increase attendance at school.
Poverty in Bolivia more than halved
Poverty in Bolivia has been more than halved from 47.20 to 15.60 during Morales’ term in office. Life expectancy has also risen from 64 to 68 years during this period. With an average economic growth of 4.7 percent, Bolivia’s economy has grown faster than in almost any other country in Latin America. At the same time, the government has been able to significantly reduce social inequality in the country.
MAS’s reforms mainly help the poorest in the country. (Foto: Lesly Derksen / Unsplash)
More rights for indigenous people
In addition to the social and economic improvements for the broad population of Bolivia, the MAS government was also able to strengthen the political rights of indigenous groups. A new constitution was adopted, making Bolivia a plurinational state. In the course of this, a total of 36 indigenous languages were recognised as official languages. In addition, the indigenous flag Wiphala has since been used on an equal footing with the national flag.
Since the electoral success of MAS, more indigenous people have been elected to the national and regional parliaments or have held ministerial posts. Joshua, a taxi driver in La Paz, explained the political change as follows:
“We used to be governed by the upper class, now our own people govern us. We now live with dignity.”
Morales’ flight from Bolivia and exile
Despite the MAS government’s successes, it has also been heavily criticised. Morales was accused of being too distant from the needs of the indigenous population. In addition, his government was repeatedly accused of a lack of environmental protection. Bolivia’s rainforests are falling victim to slash-and-burn agriculture. The dependence of the Bolivian economy on fossil fuels and raw materials is also repeatedly criticised.
However, Evo Morales received the most criticism for not wanting to leave the presidency. After his first electoral victory, he was elected president in 2009 and again in 2014 with a large majority. In 2018, the Supreme Court overturned a constitutional article that prevented him from running again. When Morales ran for president again the following year, he drew heavy criticism at home and abroad. Irregularities occurred during the election and although Morales clearly won the election, the opposition rejected the result. Riots broke out in many parts of the country. The police and military leadership sided with the opposition. When the military chief asked Morales to resign, he complied and fled Bolivia.
The right-wing opposition then took power and tried to reverse many of the MAS government’s reforms. The welfare state was to be cut back, large corporations were to control the extraction of natural resources again and, above all, the rights and influence of the indigenous population were to be pushed back. The opposition was mainly based on evangelical Christians and the country’s economic elites.
New president continues reform policy
Although it soon became clear that there was no electoral fraud in the 2019 election, the new government repeatedly delayed new elections. Elections were first held in October 2020. These were clearly won by the MAS candidate and former Minister of Economy in the Morales government, Luis Acre. Evo Morales then returned to Bolivia.
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Luis Acre is considered the architect behind Morales’ economic policy and is continuing his reforms. For example, Bolivia managed to keep inflation at the lowest level in Latin America through subsidies for food and energy.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite / Thomas Hackl as the original source/author and set a link to this article on Scoop.me. https://scoop.me/bolivia-poverty-nationalisation-mineral-resources/
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“Watershed” agreement: Farmers, water suppliers and communities work together to protect forests and water sources 

Publicerad denFörfattareIngo Geiger

In Bolivia, 24,000 farmers in cooperation with communities and public water suppliers protect more than 600,000 hectares of forest from deforestation, exploitation, and the interests of mining companies—and thus protect the regional water supply in the long term. The Reciprocal Water Agreements (ARAs) are now considered a model for conservation in South America: more and more ARAs are being signed in Peru, Colombia, Ecuador, and Mexico. How do this agreement work? 
Fourteen years ago, María Gutiérrez bought a piece of land in Alto Espejo, Santa Cruz, Bolivia. She now lives right next to the forest. There are a few fruit trees in her garden and a small river runs through it. The river provides her and her animals with drinking water. She sells the lemons, oranges, and tangerines. María lives from this. 
For a few years now, she has been making her own honey. Since then, María’s life has become easier, earning an extra 5,000 to 6,000 Bolivianos (about $800) a year. She got the bees, the boxes, and the harvesting equipment from Natura Foundation. An NGO that promotes biodiversity and sustainable water management. In return, María signed the Reciprocal Water Agreement (ARA). 
María is one of 24,000 farmers who have signed such an agreement. Together they protect 600,00 hectares of forest from deforestation, pollution, and the interests of large mining companies.   
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What is a Recipocal Water Agreement (ARA)?
The “Recipocal Watter Agreement” (Acuerdo Recíproco por Agua) is a contract between the people in the countryside, the people in the city and the public water suppliers. In short, a contract between all the people who live in the same watershed or share the same water source. Basically, it’s a cooperative effort to protect the natural water cycle for the long term. Everyone works together and benefits.
The idea behind it is simple: 

Farmers and rural people protect their forest and receive incentives for doing so: e.g., access to running water or help in growing fruits.  
The incentives are paid for by the communities and the end users through a small fee, in exchange for sustainable and clean drinking water in the long term.
Water suppliers expand their network and provide flowing water to the farmers. 

Definition: What are Reciprocal Watershed Agreements?
 “Reciprocal Watershed Agreements—known as ‘Watershared’ in South America—are simple grassroots versions of conditional transfers that help land managers located in upper watershed areas to sustainably manage their forest and water resources in ways that benefit both themselves and downstream water users.” (Nigel Asquith)
Natura Foundation takes care of the contracts and contributes to the financing of the individual projects at the beginning. The contribution is around 20 percent, so that the projects remain affordable for everyone even after a certain period of time has elapsed.  
Incentives: running water, a beehive, or a basin for fish farming
Access to running water is the biggest incentive, Teresa Vargas, executive director of Natura Foundation, told Mongabay. That’s because many of the farmers who live outside villages and towns are not yet connected to the piped water system. 
Depending on what helps local people the most, however, the incentives can be quite different: a beehive, for example, or help with growing citrus fruits or raising fish. 
The cost of the incentives is borne by the water suppliers, their customers, and the communities. The water suppliers, in turn, lay the pipes and bring the flowing water to the farmers. In the end, everyone benefits: nature is protected, the farmers get an additional income or flowing water and the people in the region have sustainable and clean water in the long term.  
Municipalities, water suppliers and end-users:pay jointly for incentives
Municipalities pay about one percent from tax revenues and 0.5 percent from the budget they receive from the central government. End users contribute either one Boliviano per month ($0.15) or an agreed percentage. Everything is done simply and without bureaucracy, directly through the water bill. The important thing is that no one is forced. The contracts and cooperations are voluntary. 
Depending on the contract, different amounts are collected and managed in a common fund. For 8,000 to 9,000 consumers, this would amount to about half a million Bolivianos (about $72,000). Natura Foundation also pays into the fund. With the standard contract term of 10 years, they only pay about 20 percent at the end. As a result, the project continues to function even after the contract expires and the NGO leaves. The fund can always be used to finance new incentives. And so, bit by bit, the area of protected forests grows. 
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Protection for nature: 23 nature reserves in 20 municipalities—an area of 3.4 million hectares
The ARAs as water protection areas are a successful model. Politicians in Bolivia are now also interested in them—for two reasons: 
The water suppliers in Bolivia are organized in cooperatives or in public companies. The government is therefore responsible for the water supply. What you get here is a concept that is already working in many communities and has more and more supporters. 
Bolivia is one of the poorest countries in Latin America and suffers greatly from the consequences of the climate crisis. But climate change is abstract—lack of or polluted drinking water, on the other hand, is a reality. The issue affects everyone and brings people together. 
Inspired by the success of these water protection areas, more and more local governments are protecting their forests. In the last 10 years, 23 protected areas have been created in 20 municipalities as a result. That’s 3.4 million hectares of forest by not disturbing the natural water cycle.
The model is now considered a model for conservation in South America, with more and more ARAs being completed in Peru, Colombia, Ecuador, and Mexico. Läs mer…